Uno Minda's annual EV order book exceeds Rs 2,500 crore

With the inclusion of orders finalised in the first quarter (April-June) of this fiscal year, the current order book for Uno Minda is in excess of Rs 2,500 crore in the EV segment, as per a senior company executive.

Out of this, the Gurugram-based auto component major company has bagged over Rs 1,350 crore in orders for EV-specific components. Notably, the latest order size is higher than twice the EV orders the company received last year. 

According to Sunil Bohra, the Group CFO and CEO of Uno Minda, the company received new orders during the first quarter (April-June) which had an annual peak revenue of around Rs 600 crore.

“New orders from EV OEMs continue to swell with order wins for EV specific components, as well as existing products. The total annual peak revenues from these orders stand at Rs 2,500 crore plus,” Bohra said during a conference call. 

Uno Minda has one of the largest ancillary product portfolios, spanning the segments of switches, lighting, acoustics, alloy wheels, die-casting, seating, and other segments. 

The diversified auto component manufacturer has further solidified its position in the electric two and three-wheeler market through a joint venture with FRIWO AG, Germany. This partnership will not only boost the manufacturing capabilities of Uno Minda but also establish it as the number one global supplier of key EV components such as battery packs, BMS, motor controllers, and DC-DC converters.

“Our new EV systems plant at Farukhnagar for our joint venture with FRIWO had started with a few assembly lines. It will gradually increase the number of clients with standard operating procedures (SOP) for more orders in the second half of FY 2023-24,” Bohra added. 

The company's management aspires to reach about 12% EBITDA margins in the medium term on the back of some projects nearing completion and significant investments in R&D. In the short term, they opine that a drag on margins is possible due to multiple project expansions underway with higher fixed costs and lower operating leverage. However, once production stabilises at new plants in the long run, operating leverage is expected to have a positive impact on margins. Also, lower depreciation and interest costs in the future will improve the bottom line.

Over the period FY12-23, Uno Minda has grown its revenue at a sharp 22.8 percent CAGR in a cyclical industry. "This is testimony to its growth potential going ahead. We expect the company to be one of the biggest beneficiaries as the auto industry transitions from an ICE dominant portfolio to an EV led one,” brokerage firm Ventura said in its report. 

On the alloy wheel division front, the company's total cumulative capacity currently stands at about 3,500,000 wheels and is fully operational. The domestic industry demand is about 35,000,000-36,000,000 wheels at present. With the addition of 2,000,000 wheels at the two-wheeler plant in Supa, Pune, the company expects to reach a domestic market share of 16 percent.