Auto components maker Minda Corporation Ltd on Tuesday reported a 51 per cent jump in consolidated net profit to ₹39.06 crore for the second quarter ended September 30, mainly driven by demand recovery.

The company had posted a consolidated net profit of ₹25.82 crore in the same quarter last fiscal, Minda Corporation said in a regulatory filing.

The consolidated revenue from operations during the period stood at ₹731.25 crore against ₹656.1 crore in the year-ago quarter, it added.

Minda Corporation Ltd Chairman and Group CEO Ashok Minda said, "In the second quarter of FY22, auto industry saw a sequential pick-up in demand with receding second wave of health pandemic and the growth trend was visible in all the vehicle segments to a varying extent".

The company delivered the performance despite higher commodity prices and the indirect adverse impact of semiconductor shortage, he added.

"Our performance is also reflected in the balance sheet position, as we are net debt negative and generated free cash flow during the first half of the year," Minda said.

Outlook

On the outlook, he said, "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".

During the second quarter, the company said, it had acquired an entire stake in Minda Stoneridge to strengthen its core business and expand technical collaboration with Stoneridge Inc.

The acquisition will be value accretive for shareholders, as the financial performance of the group will strengthen, Minda said.

"We will continue to have perpetual licenses 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 i.e. sensors and clusters," he added.

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