Minda Corp Q1 Results Review - Ebitda/Pat Beats Estimates; Strong Orderbook To Drive Growth: Axis Securities

Axis Securities Report

Minda Corporation Ltd. reported revenue in line with our estimates while Ebitda/proft after tax was a beat. Revenue (inline) grew by 11% YoY, led by increased production volumes in the three wheeler/two wheeler/private segment, partly offset by lower volumes in the commercial vehicle/tractor industry and weak exports.

It reported Ebitda of Rs 132 crore (5% Beat), up 15% YoY and Ebitda margins (beat) grew by 38 basis points in YoY on the back of product premiumization trend, increasing efficiencies via low cost automation and component localization initiatives. Profit after tax was reported at Rs 64.2 crore (21% Beat), up 42% YoY on account of higher other income.

Key Risks to our Estimates and target price

• slower than expected CV/tractor Industry demand.

• Macroeconomic Headwinds on global demand.

• Government Regulations on electric vehicle.

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