Minda Industries Q4FY20 PAT drops 90%; stock ends ~4% lower

The EBITDA margin for Q4 FY20 is at 9.48% as against 12.5% in Q4 FY19.

Jun 30, 2020 04:06 IST India Infoline News Service

Minda Industries
Minda Industries Limited (MIL) has announced its results for quarter and year ended March 31, 2020. The company has reported a 90% fall in consolidated net profit at Rs7cr in Q4FY20 as against a net profit of Rs73cr in Q4FY19.

The EBITDA for Q4FY20 has declined to Rs127cr. vis-a-vis Rs185cr, registering a decline of 31% yoy. The EBITDA margin for Q4 FY20 is at 9.48% as against 12.5% in Q4 FY19.

The EBIDTA for FY20 is Rs626cr as against Rs725cr in FY19. The other expenses were higher in an account of depreciation of key currencies like INR and Mexican Peso especially is last quarter.

PBT before exceptional items for Q4 FY20 was at Rs35cr as against Rs110cr in Q4 FY19. The decline in PBT is largely on account of lower operating leverage, suspension of production due to COVID -19.

The company has been able to limit the decline to some extent due to diversified product portfolio, customer mix, cost management drive and our focus on enhancing kit value. At a consolidated level, the company registered revenue of Rs1,339cr in Q4FY20 as against Rs1,486cr for corresponding quarter i.e., Q4FY19, registering in decline of 10%. For FY20, the revenue was Rs5465 as against Rs. 5908 in FY19.

In addition to this, the merger process of 4 wholly-owned subsidiaries is complete. The objective of this merger is to realize synergies and economy of scale benefits, besides strengthening the Balance Sheet.

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