Amidst Covid-19 impact resulting in Industry volume decline Minda Corporation posted an Operating Revenue of Rs178cr in Q1FY21, a decline of 69.5%. Cost optimization measures resulted in a significant absolute fall in employee cost and other expenses. EBITDA loss of Rs20.3cr.
The stock ended at Rs72 down by Rs2.5 or 3.36% from its previous closing of Rs74.50 on the BSE. The scrip opened at Rs73.95 and has touched a high and low of Rs74.45 and Rs71.10 respectively.
Focus on efficient working capital and tight cash flow management resulted in positive free cash flow even in a tough market condition of Q1FY21, the company said.
Ashok Minda, Chairman and Group CEO said “The first quarter of FY21 was an unparalleled period for the auto industry as the business activity was severely impacted by the Covid-19 pandemic. However we are seeing green shoots emerging in certain segments especially two-wheelers and tractors with production and sales picking up from June’20 onwards. In these turbulent times, Minda Corporation reported Consolidated Revenue from Operations of Rs178cr, a decline of 69.5% on yoy basis which is better than Industry. The company also took numerous cost optimization measures and continued its focus on efficient working capital management during the quarter resulting in positive free cash flow. The Company’s strong capital structure has helped us emerge stronger out of the current pandemic. We look forward to robust recovery and a quick return to profitability from Q2 FY21 onwards.”