Minda Corporation reports loss of Rs 35.40 crore for June quarter

Auto component maker Minda Corporation on Thursday reported a loss of Rs 35.40 crore for the quarter to June 2020.

The flagship company of the Spark Minda had posted a profit of Rs 21.20 crore in the June quarter of 2019-20.

Operating revenue declined 69.5 per cent to Rs 178 crore during the quarter under review as against Rs 584 crore in Q1 FY20.

Various decisions taken during the June quarter to reduce the breakeven level and allocate capital efficiently is expected to improve performance from Q2 FY21, the company said.

"The first quarter of FY21 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'20 onwards," according to a Minda Corporation statement.

Focus on efficient working capital and tight cash flow management resulted in positive free cash floweven in a tough market condition of Q1 FY21,the company said.

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, it said adding the strong capital structure has helped it emerge stronger out of the current pandemic.

Minda Corporation expects robust recovery and a quick return to profitability from September quarter onwards, the company said.