Tier 1 supplier Uno Minda has reported its highest-ever quarterly revenue of Rs 2,915 crore in Q3 FY2023 as against Rs 2,181 crore for the corresponding quarter last year, a growth of 34 percent YoY.
The company says even on QoQ basis while the industry volumes declined by 16 percent, it was able to grow, despite softening of some commodity prices impacting revenues.
For the period the company reported net profit of Rs 162 crore as against Rs 101 crore a year ago.
Furthermore, the Uno Minda Board has approved acquiring the remaining stake of 22.64 percent for Rs 115.5 crore, held by joint venture partner Kosei to make Minda Kosei Aluminum a wholly-owned subsidiary.
Post-acquisition, while joint venture for MKA will be terminated, the company will enter into TLA (Technology License Agreement) with Kosei to ensure continuity of technology support. The transaction is targeted to be completed on or before March 31, 2023.
Nirmal K Minda, CMD, Uno Minda Group said, “The automotive industry experienced a healthy revival in FY2023, aided by economic activity, increased mobility and improved discretionary spending. Uno Minda is well placed to capitalise on the developments proposed in the recent budget with its focus on localisation delivering best-in-class products to both existing and potential customers. Our ability to deliver new and premium products is fuelled with continuous R&D, aiding in increasing our share of business with the OEM’s across variants.”
Sunil Bohra, CFO, Uno Minda Group said, “Our consolidated revenues for Q3 FY2023 stood at Rs 2,915 crore, a growth of 34 percent on YoY basis backed by diversified product portfolio, increasing content per vehicle and cross selling of our products among customers. On the back of technological upgradation and new launches in pipeline by various OEMs, we are all geared up to capitalise on the long-standing relationship with customers.”
He further mentioned that with the increase in application of four-wheeler alloy wheel will help bridge the penetration gap in comparison to developed countries provides ample growth opportunities in coming years.
“Our proposed additional investment in Minda Kosei will help us to further capitalise on this growing opportunity hence will be value accretive to shareholders,” concluded Vohra.
