Minda Corp tumbles on recording Q4 net loss of Rs 300 cr

Minda Corporation slumped 6.91% to Rs 64 after the company reported a consolidated net loss of Rs 299.77 crore in Q4 FY20 compared with net profit of Rs 41.92 crore in Q4 FY19.

Net sales declined 9.5% year-on-year (YoY) to Rs 697.93 crore during the quarter.

The company has recorded impairment charge of Rs 293.29 crore which has been presented as exceptional items in respect of goodwill relating to Minda KTSN Plastic Solutions GmbH Co. & KG, Germany (MKTSN) and reduction in carrying value of property, plant and equipment and other assets of MKTSN after it filed for insolvency.

Pre-tax loss stood at 284.44 crore in Q4 March 2020 as against a pre-tax profit of Rs 58.09 crore in Q4 March 2019. Current tax expenses fell 5.2% YoY to Rs 15.33 crore in the March quarter.

Minda Corporation is one of the leading automotive component manufacturing companies in India. It caters to 2/3 wheelers, passenger vehicles, commercial vehicles and after-market.

On a year-to-date (YTD) basis, the stock has fallen 31.40% while the S&P BSE Auto index and the S&P BSE 500 index have declined 15.12% and 12.05%, respectively.

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