Tier 1 supplier Minda Corporation, the flagship company of Spark Minda has announced its financial results for Q2 FY2021, with revenue of Rs 656 crore (-10.7% YoY), compared to Rs 735 crore for the same period last year, the net profit came at Rs 25 crore, lower by 30 percent YoY.

The company says its focus on improving working capital management and judicial spent on capex has further strengthened its balance sheet. The Tier 1 says it has cash and cash equivalent of Rs 475 crore as against gross debt of Rs 426 crore.

The board of directors also approved the appointment of Aakash Minda as an additional director in the category of executive director of the board of the company with effect from November 5. He comes with a global experience of working in automotive industry across Europe, North America, and Asia. He started his career with Schaeffler Group in 2012 and then shifted to Spark Minda Group where he was the CEO of Interior and Plastics Division in 2018.

Commenting on his appointment Aakash Minda said: “I am truly honoured and privileged to be a part of the Minda Corp board, especially in the times when the Group is changing guards to gear up for the future and take the next leap of growth. Minda Corp is at the ideal platform to exploit the emerging big trends in the automobile industry and I am excited to be given an opportunity to help and build significant value from this already strong base.”

Ashok Minda, chairman, and Group CEO said: “The auto industry in second quarter of FY21 saw sequential growth in demand as economy recovers from adverse impact of Covid-19. Two-wheelers, tractors and passenger vehicles saw revival in production and sales volumes, indicating preference for personal transport and growth in agriculture sector. The initial phase of festive period is indicating the sustenance of the demand and thus we are cautiously optimistic for the second half of the year. I am pleased to report that Minda Corporation delivered strong consolidated revenue from continued operations of Rs. 6,561 million, a growth of 17.5% on Y-o-Y basis despite decline in the industry over same period. The growth was driven by higher content per vehicle as industry transits from BS-IV to BS-VI and increase in aftermarket sales and exports. Reduction in fixed cost measures implemented by company in this period has helped us in achieving double digit EBITDA margins and a strong net cash position despite cost of operations and labour productivity getting adversely impacted due to covid-19 pandemic.”

“This is a momentous occasion for us and a very key milestone for the Group, where the next generation joins the board to take the group to newer height. Joining of Aakash Minda and getting Phi Capital as a financial investor in the Company is a perfect fit in Minda Corp’s big plans to achieve profitable growth and become technologically advanced organization to create value for all stakeholders,” concluded Ashok Minda.