Minda Industries posts 31% growth in FY’15; to hike stake in overseas entities to 51%

As part of the broader reorganization at the consolidated level, Minda Industries Ltd (MIL) is upping its stake in PT Minda Asean Automotive (Indonesia) that makes switches and lighting products and SAM Global Pte Ltd, Singapore (a 100 percent holding company of PT Minda Vietnam Company) to 51 percent in 2015-16 from 19 percent in 2014-15. The approval for this has already been sanctioned by the Board of directors for it and the transaction is expected to be completed in the current fiscal.

The guidance given for MIL consolidated for 2015-16 is a 25-30 percent growth during FY’16.

MIL, which recently announced its audited results, recorded standalone revenues of Rs 1,370 crore for 2014-15 compared to Rs 1,108 crore for FY’14, posting a growth of 24 percent. Consolidated revenues for 2014-15 are Rs 2,227 crore against Rs 1,706 crore in 2013-14, a growth of 31 percent YoY.

Consolidated return on capital employed has improved from 6 percent in 2013-14 to 15 percent in 2014-15 whereas standalone return on capital employed has increased from 7 percent in FY’14 to 16 percent  in FY’15.

This comes on the back of various organic and inorganic expansions. MIL, which forms part of the UNO Minda Group, had acquired the Spanish company Clarton Horns in April 2013 which was at the time a loss making entity with a profit before tax in the red at Rs (-) 11.5 crore in 2013-14. The company’s operations have been turned around to become profitable to (+) Rs 1.85 crore in 2014-15, and in 2015-16 the company is expected to perform still better. Plans are to leverage the Spanish technology and make modular horns for India as well. Synergistic benefits have led to improved EBITDA margins.

MIL has also been begun exporting modular and handlebar switches to Piaggio Italy for its two-wheelers in FY’15 worth Rs 20 crore in FY’15.  This is expected to almost double in the current fiscal. The company had entered into a joint venture with Panasonic last October-November for making batteries for two-wheelers and is now moving into the four-wheeler business as well.

In February this year UNO Minda had inked a joint venture with the Kosei Group of Japan for expanding its presence in alloy wheels. For this operation, it has set up a new facility with a production capacity of 60,000 alloy wheels a month at Bawal, Haryana that will go on stream in May-June, FY’17.

Meanwhile, in FY’15, UNO Minda also received patents from the Japan Patent Association for illuminated handlebar switches based on LED technology in September 2014. This takes the total number of patents granted to it to three in Japan. This even as the Group expands its lighting capacity at its plant in Manesar for meeting the requirements of new model launches of its key customers.