Minda Industries - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 616, MCap: Rs. 16,750 crore)

Minda Industries' (MIL) reported robust performance in Q4FY21 and was a strong beat on all our operational estimates.

Q4FY21 Earnings Summary

- Consolidated revenues for Q4FY21 came in at Rs. 2,238 crore, up 49.4% YoY, up 10.2% QoQ (I Direct estimate : Rs. 1,985 crore). The company continued to outperform user industries, with net sales for the year up by 2.4% YoY to Rs. 6,374 crore. Quarterly and full year numbers include the numbers of merged entity i.e. Harita Seating Systems Ltd with effect from 1st April 2019.

- Consolidated EBITDA for Q4FY21 stood at Rs. 301.6 crore (our estimate Rs. 248.2 crore), with attendant margins down 26 bps QoQ to 13.5% (I-Direct estimate 12.5%). Margins hit was limited sequentially despite 171 bps gross margin contraction as the company realised significant operating leverage benefits. Full year FY21 margins at 11.4% were up 60 bps YoY.

- Reported consolidated PAT for the quarter stood at Rs. 140.3 crore, up 21.6% QoQ (I Direct estimate: Rs. 87.5 crore). This compared to Q4FY20 profit of Rs. 13.1 crore. Profitability beat was on account of higher than anticipated sales and margins as well as higher profit from subsidiaries/associates - which stood at Rs. 21.5 crore during the quarter vs. Rs. 8.9 crore sequentially.

- Consolidated PAT for the year stood at Rs. 206.6 crore, up 33.1% YoY.

- The company posted CFO of ~Rs. 343 crore in FY21 vs. Rs. 1,049 crore in FY20 amid increase in receivables and inventories.

- MIL declared final dividend of Rs. 0.5/share for FY21, taking total dividend for the year to Rs. 0.85/share.

- The company announced its intention to raise fresh funds worth upto Rs. 700 crore for further growth strategies and general corporate purposes. MIL would notably also be investing Rs. 115 crore for taking over JV partner's 49% stake in Harita Fehrer Automotive (manufacturer of automotive seats).

We will be coming out with a detailed report soon.

Shares of MINDA INDUSTRIES LTD. was last trading in BSE at Rs.609.2 as compared to the previous close of Rs. 616. The total number of shares traded during the day was 109926 in over 5869 trades.

The stock hit an intraday high of Rs. 626 and intraday low of 602. The net turnover during the day was Rs. 67594807.

Source : Equity Bulls

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