Shares of Minda Corporation hit a new high of Rs 294.20, gaining 4 per cent on the BSE in Friday’s intra-day trade in an otherwise subdued market ahead of the board meeting today for considering the fund raising proposal. The stock of auto components & equipments company surpassed its previous high of Rs 290, touched on May 23, 2023. In comparison, the S&P BSE Sensex was up 0.07 per cent at 62,471 at 10:44 AM.
A meeting of the Board of Directors of the company was proposed to be held on Friday, June 2, 2023 to discuss and consider, among other things, raising of funds through issue of equity shares or any other equity based instruments / securities by way of preferential issue, qualified institutions placement or rights issue, or through any other permissible mode or any combination thereof of any of the above, Minda Corporation said in an exchange filing on May 30.
Thus far in the calendar year 2023, the stock price of Minda Corporation has surged 43 per cent, as compared to 2.1 per cent rise in the S&P BSE Sensex.
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Minda Corporation, the flagship company of Spark Minda, has a diversified product portfolio that encompasses Mechatronics; Information and Connected Systems and Plastic and Interior for auto OEMs. These products cater to 2/3 wheelers, passenger vehicles, commercial vehicles, off-roaders and aftermarket. The Company has a diversified customer base including Indian and global original equipment manufacturers and Tier-1 customers.
During the financial year 2023 (FY23), Minda Corporation has reported a better-than-industry performance, with 45 per cent year-on-year (YoY) growth in revenue from operations at Rs 4,300 crore. EBITDA margin for the year improved by 83 basis points to 10.7 per cent. The company delivered double-digit EBITDA margin for 11th straight quarters.
The company said the growth was driven by addition of new customers and products, premiumization across products, leading to increase in kit value and increasing business with existing and new customers.
The automotive industry exhibited satisfactory performance across various segments. The domestic auto market delivered positive growth, primarily driven by robust urban sales. However, exports continued to face challenges due to global geopolitical factors. Two-wheeler demand remained sluggish due to concerns about affordability and increasing fuel costs.
The demand for passenger vehicle remained robust, thanks to a strong order book with OEMs and the introduction of new products. Additionally, government's accelerated infrastructure spending contributed to an upswing in commercial vehicle demand. The tractor segment experienced a remarkable surge in growth, surpassing expectations with a strong double-digit increase, Minda Corp said.
During the year, Minda Corp made a financial investment of Rs 400 crore in Pricol from open market, acquiring 15.7 per cent. The company said it has applied for Competition Commission of India (CCI) application for stake acquisition of up to 24.5 per cent at this stage, in line with all governance and compliance requirements.