Minda Corporation's Q1FY19 consolidated net profit rises 63% yoy to Rs38cr : In-line with Estimates

The company’s consolidated revenue stood at Rs778cr, up 34% yoy and 8% qoq.

Aug 08, 2018 01:08 IST India Infoline Research Team


Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 778.27 33.8
EBITDA 73.10 64.9
EBITDA Margin (%) 9.4 177
Net Profit (adjusted) 37.59 63.3
***EBITDA margin change is bps

Auto ancillary company Minda Corporation Limited (MCorp) reported better than expected revenues and in-line EBITDA and PAT in Q1FY19. The company reported consolidated revenue of Rs778cr, up 34% yoy (8% qoq) against consensus revenue estimate of Rs725cr. A sharp rise in input cost was offset by slower rise in operating and employee expenses. Consequently, EBITDA was 65% yoy higher (11% qoq lower) at Rs73cr. This was in-line with consensus EBITDA estimate of Rs75cr. EBITDA margin expanded 177bps yoy (contracted 196bps qoq) to 9.4%. Growth in reported consolidated PAT almost mirrored EBITDA growth due to stable depreciation, while lower interest cost (as % of EBIT) offset higher tax rate. As a result, consolidated PAT came in-line with consensus estimate at Rs38cr.

Other Highlights
  • Over the past five quarters, effective tax rate has been inching closer to the 30% mark. In Q1FY19, the tax rate was 29% vs. 26% in Q1FY18 (28% in Q4FY18).
  • During the current quarter, MCorp raised Rs305.95cr through Qualified Institutional Placement (QIP) of equity shares. It issued 1.79cr shares at Rs173.47 per share (9% premium to CMP).

Conference call highlights
  • MCorp bagged some key orders during the quarter – Rs25cr order for instrument clusters from a leading Indian 2W OEM, Rs35cr order from a 2W OEM for engine oil temperature sensor and engine speed sensor, Rs30cr order for wiring harness, and a compressor housing order from a German Tier-I company with annual peak revenue potential of Rs13cr.
  • After facing some issues over past few quarters, Minda Furukawa’s numbers are now audited, and hence, the stated numbers will not change.

Technical View:

Minda Corporation Ltd ended at Rs. 158.90, up by 1.8 points or 1.15% from its previous closing of Rs. 157.10 on the BSE.
The scrip opened at Rs. 157.90 and touched a high and low of Rs. 161.90 and Rs. 157.50 respectively. A total of 4,40,905 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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