In what is seen as a move to accelerate its engagement in the automotive electronics domain, Minda Corporation has acquired its joint venture partner Stoneridge Inc of the USA’s entire 49% stake in Minda Stoneridge Instruments. It will also expand its technical collaboration with Stoneridge Inc, which is a leading manufacturer of electronics instruments.
Commenting on the acquisition, Ashok Minda, Chairman and Group CEO, Minda Corp said: “Minda Corporation has increased stake in Minda Stoneridge to strengthen its core business. The acquisition will be value accretive for shareholders as financial performance of group will strengthen. We will continue to have perpetual license of all existing technology licenses granted by Stoneridge Inc and continue technical Collaboration with Stoneridge Inc for future products. This initiative has been taken in line with our vision to grow in advanced technological products -- sensors and clusters.”
Minda Stoneridge Instruments has exclusive manufacturing and marketing rights for India and 17 Asian countries, namely Malaysia, Indonesia, Philippines, Singapore, Thailand, Vietnam, Pakistan, Bangladesh, Brunei, Burma, Cambodia, Laos, Mauritius, Maldives, Nepal and Sri Lanka. The company has manufacturing plants in Chakan, Pune and in Chennai, both logistically well placed in these two leading auto hubs of the country.
Strong performance in Q2 FY2022
Minda Corp also announced its results for the second quarter of FY2022. While operating revenue was Rs 731 crore, a YoY growth of 11.5%, EBITDA was Rs 77 crore with strong operating margins of 10.6%. Profit after tax stood at Rs 39 crore with PAT margins of 5.3%.
Commenting on the results, Ashok Minda said:“In the second quarter of FY2022, the auto industry saw sequential pick up in demand with receding second wave of health pandemic and the growth trend was visible in all the vehicle segments to varying extent. We have delivered Revenue from Operations of Rs 7,313 million during the quarter, a robust sequential growth of 11.5% as against industry de-growth of (2.6%). With the economy recovering and evolving dynamics in the industry, we remain cautiously optimistic about the times ahead, yet, we remain confident in our abilities and strong product offerings to deliver sustainable profitable growth.”