MINDACORPNSEQ4 FY25May 30, 2025

Minda Corporation Limited

6,114words

71turns

8analyst exchanges

4executives

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Management on call

Aakash Minda

EXECUTIVE DIRECTOR

Vinod Raheja

GROUP CFO

Sameer Sharma

GROUP HEAD, STRATEGY & M&A

Nitesh Jain

LEAD INVESTOR RELATIONS

Key numbers — 40 extracted

3.3%

was driven by a consumer shift towards SUVs and hatchbacks. The Commercial Vehicle segment saw a 3.3% decline in production volumes, impacted by infrastructure projects and delay in monsoon disruptio

e rural sentiment, government support and a good monsoon. Overall, the industry delivered about a 6% Y-o-Y growth in Q4, underpinned by increased EV traction, product premiumization and rising con

INR 1,321 crore

FY25. The Company surpassed consensus estimates, delivering the highest-ever quarterly revenue of INR 1,321 crores, a growth of 9% on a Y-o-Y basis. The Company reported highest-ever EBITDA of INR 153 crores, al

nsensus estimates, delivering the highest-ever quarterly revenue of INR 1,321 crores, a growth of 9% on a Y-o-Y basis. The Company reported highest-ever EBITDA of INR 153 crores, along with the high

INR 153 crore

INR 1,321 crores, a growth of 9% on a Y-o-Y basis. The Company reported highest-ever EBITDA of INR 153 crores, along with the highest ever margin of 11.6% for the quarter, demonstrating strong operational e

11.6%

The Company reported highest-ever EBITDA of INR 153 crores, along with the highest ever margin of 11.6% for the quarter, demonstrating strong operational execution and the effectiveness of our strategi

INR 65 crore

and the effectiveness of our strategic initiatives. Profit before tax for the quarter stood at INR 65 crores with a margin of 4.9%. PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%. Thi

4.9%

strategic initiatives. Profit before tax for the quarter stood at INR 65 crores with a margin of 4.9%. PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%. This was impacted by highe

INR 52 crore

re tax for the quarter stood at INR 65 crores with a margin of 4.9%. PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%. This was impacted by higher finance costs associated with the strateg

3.9%

65 crores with a margin of 4.9%. PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%. This was impacted by higher finance costs associated with the strategic investment in flash elec

INR 5,056 crore

rowth in the future. For the full year FY25, the Company delivered highest ever annual revenue of INR 5,056 crores, registering a growth of 9% Y-o-Y basis. The Company reported highest EBITDA of INR 575 crores,

INR 575 crore

NR 5,056 crores, registering a growth of 9% Y-o-Y basis. The Company reported highest EBITDA of INR 575 crores, a growth of 12% Y-o-Y with a margin expansion of 31 basis points, with PAT for the full year st

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Guidance — 20 items

Ronak Mehta

opening

“On behalf of ICICI Securities, I would like to welcome you all to Q4 FY25 Earnings Conference Call of Minda Corporation Limited.”

Aakash Minda

opening

“We believe his commercial acumen; capital market expertise and strategic mindset will be key in shaping the next growth phase of our group.”

Aakash Minda

opening

“As FY25 concludes, the Indian automotive industry continued to navigate a dynamic environment with resilience.”

Now reflecting on the Company performance

opening

“Minda Corporation continued to strengthen its market position in Q4 FY25.”

Now reflecting on the Company performance

opening

“PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%.”

Now reflecting on the Company performance

opening

“For the full year FY25, the Company delivered highest ever annual revenue of INR 5,056 crores, registering a growth of 9% Y-o-Y basis.”

Now reflecting on the Company performance

opening

“Our strategic initiatives continue to drive growth and enhance our competitive position in the FY25.”

Some of the key highlights are

opening

“Our efforts to enhance system solutions offering, strengthening our customer relationships and investing in new technologies, and strong focus on operational excellence will continue to drive the growth in FY26 and beyond.”

Vinod Raheja

“On the sunroof plant, is it on track to start operations in Q1 FY26?”

Aakash Minda

“So Raghu, the revenues will not be in FY26.”

Risks & concerns — 2 flagged

The Commercial Vehicle segment saw a 3.3% decline in production volumes, impacted by infrastructure projects and delay in monsoon disruptions.

— Aakash Minda

So we had about INR 20 crores impact of interest, because of this in the quarterly.

— Dhananjay Mishra

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Q&A — 8 exchanges

Yes. Hi Raghu. I will request Vinod Raheja to please answer this.

Vinod Raheja

Yes. We were required to sort of hold the postal ballot, the voting of which completed by end April. We are expecting the stock exchanges approval within this week, and 25% of the money should be received max within 2 weeks and thereafter, as per the terms, the balance 75% can be paid by the promoters within 18 months. Raghunandhan N. L.: Got it, sir. Thank you for that. On the sunroof plant, is it on track to start operations in Q1 FY26? How much revenue can we expect in FY26? And based on the capacity, what can be the peak revenue? So Raghu, the revenues will not be in FY26. As we have commi

Thanks for taking my question. I just wanted to ask that in the die casting business, there is a Y-o-Y degrowth of roughly 40% for the quarter. Any particular reason for that?

Aakash Minda

Sorry, can you speak a little louder, please? Yes, sir. In the die casting business, there is a Y-o-Y degrowth of 40%. Any particular reason for that? Sorry, in die casting Y-o-Y for what please? For the quarter, there's a degrowth in the die casting business revenue. No, there is no degrowth, by the way. The Die Casting division has grown Y-o-Y and Q-o-Q basis. So our Die Casting division has overall grown. On a full year basis, the Die Casting division has grown by about 15.5%. And on a quarterly basis, we have grown by again, 15% to 16%. Okay. Thank you sir.

Thank you for the opportunity and congratulations for strong margins in this tough environment. So first question on utilization. If you can give some ballpark number for both the segments, approx., blended average utilization for Mechatronics division as well as for the Connected System.

Aakash Minda

Yes. Hi Mitul, again, it depends on the various segments, various plants, various divisions depending on the products as well. But overall, we, as an organization, are currently working to the tune of about 65% to 80% of utilization. So different segments, different plants will have that variation. Second question is, again, a follow-up to Raghu’s question on synergy with Flash. Any thought process on joint R&D to develop a completely new product segment or product line itself and in terms of synergy on the R&D side? Yes, that work has already started. Our both engineering teams from our techn

Yes. Thanks for the opportunity. My question is with respect to Flash Electronics. So we had about INR 20 crores impact of interest, because of this in the quarterly. And on the full year basis, it will be about INR 80 crores. So when we acquired Flash Electronics, you said that because of cross selling and synergy benefit, it will be EPS accretive from FY26 onwards. So how confident are you that it will be EPS accretive? And secondly, in this quarter also have we included in this joint venture profit number from Flash Electron for 2 months?

Aakash Minda

Yes. I will ask Vinod to answer. However, we had said that this will be EPS accretive from FY27 and for the FY25, we have only 75 days of consolidation at the PAT level. So, Vinod, over to you, please. Yes. In the current quarter, we sort of took a share of profits for 75 days. And in the results, you can see that the share of profit of associates number that we have given is INR 10.30 crores versus INR 1.15 crores in the same period last year. So what was the contribution from Flash in that, out of INR 10 crores, entirely Flash revenue? Yes. Contribution of Flash for about 75 days was INR 8 c

Yes. Thanks for the opportunity. I have a couple of questions. Firstly, what is the progress on the TFT cluster business? If you can just highlight new order wins in this segment? And what could be the growth outlook for this segment over the next couple of years?

Aakash Minda

Yes. as you know, that because of the premiumization, more and more TFT clusters penetration is increasing across segments. We have won orders from all segments, customers, including domestic and exports for the TFT. So, again, we have been manufacturing TFT clusters and exporting them for the last 3 years or 4 years and more. Over the last 1 year, we have won multiple orders from 2-wheelers, 3-wheelers, commercial vehicle as well as passenger vehicle manufacturers. So the penetration is expected to increase in the quarters and years to come. And yes, Minda Corporation is fully ready for our i

Yes. I will explain to you broadly the growth percentages. So our Security division's growth has been in about 11% to 12%. The die casting has grown by about 13%-14%, the wiring harness has grown in single digits. And our Minda Instruments Limited has grown close to 20%. These are again the highest business values per se. Of course, there are small businesses or start-up businesses like the EV businesses and the Starter Motor division, etc. They, of course, have a much higher growth, because their base is also very low. Raghunandhan N. L.: Got it, sir. Thank you very much. On wiring harness, C

Aakash Minda

Yes, Raghu. So as you know, that we started this journey about a couple of years ago. And today also, we showed that we have now expanded our facilities, including capacities in engineering as well as operations for higher localization. In that respect itself, currently, our utilization of Minda connectors from our own Wiring Harness division is to the range of about 15%. And for the full year also, we have almost reached the same number. Now going forward, with our validations from our customers, both in high voltage or EV segment and Low-Voltage segments, this is expected to grow higher. Our

Yes, sir. Thank you for the opportunity again. Sir, my question is on order book for Flash, if you can have some broader details if you can share.

Aakash Minda

Mitul, with respect to the Flash order book, the only thing I can share at the moment is they are consistently winning orders from their largest customer across their new segments, which are getting launched. Also, they have won recent orders for their exports business from their Metallics division. And from Minda Corporation side, we have also now started taking other customers of ours, and they have already visited Flash Electronics for audits as well as getting us on the bidders list. So we are on that journey, and those teams have already been formed to take up these next steps. So at the

So, once again, thank you very much. Minda Corporation, we remain highly confident in our growth trajectory, both in the near term and long term, driven by strategic investments and unwavering commitments to advancing our products and technologies. We are committed to creating value for all of our stakeholders and shareholders. We are investing deeply in our capabilities in terms of people, capacities, technologies and competencies across fields. And with this, I would like to also welcome the next financial year and looking forward to meeting all of you soon. Thank you very much.

Management

Speaking time

Aakash Minda

Moderator

Vinod Raheja

Ronak Mehta

Dhananjay Mishra

Mitul Shah

Shubham Bhatra

Now reflecting on the Company performance

Some of the key highlights are

Business vertical performance on the next slide

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Opening remarks

Ronak Mehta

Thank you, Puja. Good evening, everyone. On behalf of ICICI Securities, I would like to welcome you all to Q4 FY25 Earnings Conference Call of Minda Corporation Limited. Today, we have with us from the Management Team, Mr. Akash Minda Executive Director; Mr. Vinod Raheja Group CFO; Mr. Sameer Sharma Group Head, Strategy and M&A; and Mr. Nitesh Jain Lead Investor Relations. I would like to thank the Management for giving us this opportunity. I will now hand over the call to the Management for their opening comments, post which we will open the floor for Q&A. Over to you, sir.

Aakash Minda

Good afternoon, everybody. Thank you, Ronak, and thank you, ICICI Securities for hosting this call. Good afternoon, everyone, and welcome to the Q4 and FY25 Earnings Conference Call for Minda Corporation Limited. I hope you are all doing well. It is a pleasure to connect with you today and present the Company's performance for the quarter and the full financial year, along with the key developments across the businesses. Before we begin, I would like to take a moment to introduce Mr. Ajay Agarwal, who has joined us as President, Finance and Strategy. Mr. Agarwal is a chartered accountant and lawyer, brings over 24 years of experience in the areas of strategy and finance. We believe his commercial acumen; capital market expertise and strategic mindset will be key in shaping the next growth phase of our group. We would like to welcome him. As FY25 concludes, the Indian automotive industry continued to navigate a dynamic environment with resilience. Amidst global macroeconomic challenges,

Now reflecting on the Company performance

Minda Corporation continued to strengthen its market position in Q4 FY25. The Company surpassed consensus estimates, delivering the highest-ever quarterly revenue of INR 1,321 crores, a growth of 9% on a Y-o-Y basis. The Company reported highest-ever EBITDA of INR 153 crores, along with the highest ever margin of 11.6% for the quarter, demonstrating strong operational execution and the effectiveness of our strategic initiatives. Profit before tax for the quarter stood at INR 65 crores with a margin of 4.9%. PAT for the Q4 FY25 stood at INR 52 crores with a PAT margin of 3.9%. This was impacted by higher finance costs associated with the strategic investment in flash electronics and increased depreciation stemming from ongoing capacity expansion and technological upgrades. These strategic investments are expected to deliver and drive accelerated growth in the future. For the full year FY25, the Company delivered highest ever annual revenue of INR 5,056 crores, registering a growth of 9%

Some of the key highlights are

• In January 2025, Minda Corporation entered into a strategic partnership through the acquisition of 49% stake in Flash Electronics, a key player in powertrain and EV components in India. It is designed to offer complete system solutions and capture a greater share of the fast-growing Automotive and EV segment in India. This partnership opens up a new avenue for diversification through partnerships, adding powertrain and powertrain electronics as a new avenue for growth for the Company. • During the year, the Company booked lifetime orders exceeding INR 8,000 crores with approximately 25% of new orders coming from electric vehicle platforms. This underscores our increasing traction in the new energy vehicle, which continues to be our strategic focus area. In Q4, EV sales stood at about 8% of the Minda Corporation's total revenue and on a full year basis, it is approximately 7%. • Flash Electronics has its 23% of its revenue coming from EV products, which is a 92% growth over the previo

Business vertical performance on the next slide

So our Mechatronics and Aftermarket division grew from INR 590 crores to INR 654 crores, marking an 11% jump. And Information and Connected Systems moved from INR 625 crores to INR 667 crores, showing a 7% jump. On a full year basis on the right side, the Mechatronics division has increased its revenue by 10% from INR 2,251 crores to INR 2,475 crores, and the Wiring Harness and Instrument Cluster division has grown from INR 2,400 crores to INR 2,581 crores, marking 8% growth. Moving to the next slide, which shows the revenue breakup by products and geography: Wiring harness continues to be about 28%; vehicle access 24%; die casting 16%; clusters 16%; and others, which includes our sensors, EV products, other electronics is growing to 16% now. By geography, India continues to be majority at about 88%. Our exports are about 7% and Southeast Asia locations, which is Indonesia and Vietnam, contribute about 5%. By end market, 2-wheelers and 3-wheelers contribute largest, which is 47%; comme

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