Minda Corp reports loss of Rs 35.4 crore in Covid-19 impacted Q1 FY2021

by Autocar Pro News Desk , 13 Aug 2020

Tier 1 supplier Minda Corporation, the flagship company of Spark Minda, has announced its financial result for the first quarter of FY2021. The company reported revenue of Rs 178 crore, a YoY decline of 69.5 percent, and loss of Rs 35.4 crore (-266%), compared to a profit of Rs 21 crore for the same period last year.

The company says it has taken various decisions in Q1 FY2021 to reduce the breakeven level and allocate capital efficiently is expected to improve performance from Q2 FY2021 onward as it sees green shoots of recovery from June 2020. It also is focussing on efficient working capital and tight cash flow management resulted in positive free cash flow even in a tough market condition of Q1 FY2021.

Commenting on the results, Ashok Minda, chairman and Group CEO, Minda Corporation said: “The Q1 FY2021 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 onwards. In these turbulent times, Minda Corporation reported consolidated revenue from operations of Rs 178 crore, a decline of 69.5 percent on YoY basis which is better than Industry. The company also took numerous cost optimisation 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 FY2021 onwards.”