Minda Industries posts over two-fold jump in Q3 profit at Rs 121 cr

Auto components maker Minda Industries on Thursday reported an over two-fold jump in consolidated profit after tax at Rs 121 crore in the third quarter ended December 2020, riding on the continued growth momentum in the automobile industry fuelled by strong demand.

The company, the flagship firm of the Uno Minda Group, had posted a consolidated profit after tax of Rs 53 crore in the same period last fiscal, Minda Industries said in a statement.

Consolidated revenue from operation grew by 36 per cent at Rs 1,802 crore during the period under review as against Rs 1,327 crore in the corresponding quarter last fiscal, it added.

The board of Minda Industries has also declared a 17.5 per cent interim dividend of 35 paisa per share.

"Most automotive industry segments have reported successive improvement in offtake throughout the second half of calendar year 2020 on the back of initial bounce provided by pent-up demand aspect, followed by preference for affordable personal mobility," the company said.

Commenting on the performance, Uno Minda Group Chairman and Managing Director Nirmal K Minda said there has been an improvement in our overall performance during the quarter.

"We see the demand increase more than ever due to the rise in preference for personal mobility. Localisation has been one of the key pillars of our foundation," he added.

Uno Minda Group CFO Sunil Bohra said the company witnessed growth across all product portfolios during the quarter.

"Healthy demand coupled with higher kit value per vehicle is enabling us to continue better than industry performance. During the quarter, we have been able to bring in more efficiencies on the operational front as well as strengthened our balance sheet," he added.

On the outlook, Minda said, "We believe that the long term demand outlook is still intact and we are well poised to capitalise on this demand. We will continue to pursue our goal with new vigor as we will emerge much stronger from the current challenging environment.

The company, however, said the mobility demand surge driven by COVID-19 risk is expected to normalise as public transport restarts across regions.