Shares of this leading automotive component manufacturer increased by nearly 5 percent following the signing of an agreement with Sanco Connecting Technology, China, to provide Electrical Distribution Systems (EDS) solutions for the EV market.
Share Price Movement
During Wednesday’s trading session, Minda Corporation Limited‘s share price opened at Rs.565 and peaked at Rs.589, marking a 4.24 percent increase. The share price has since declined and is now at Rs.584.85.
What is the news
On September 4, 2024, Minda Corporation Limited signed a Technology Licensing Agreement with Sanco Connecting Technology of China, a leader in EV connection systems.
This agreement will enhance Minda Corp’s EV product range, including Electrical Distribution Systems (EDS), charging gun assemblies, bus bars, cell contact systems, Power Distribution Units (PDU), and Battery Distribution Units (BDU).
The partnership marks a major milestone for Minda Corporation, enabling it to locally design, develop, and manufacture advanced EDS solutions for EV customers in India. It will also strengthen the vertical integration capabilities of Minda Corp’s Wiring Harness Division, solidifying its role as a key player in the EV supply chain ecosystem.
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Management Commentary
Commenting on this significant development, Mr. Aakash Minda, Executive Director said, “We are excited to partner with SANCO, a collaboration that marks a significant milestone in our pursuit to deliver comprehensive and customized Electrical Distribution System (EDS) solutions to the EV market. This partnership signifies our shared commitment to offer innovative & sustainable mobility solutions for the growing Electric Vehicle industry.”
Product Revenue
As of Q1 FY25, Minda Corporation’s revenue distribution is led by the Wiring Harness segment, which accounts for 32 percent of the total revenue. Locksets follow with 25 percent, DCD contributes 16 percent, Clusters generate 15 percent, and other products make up 12 percent.
Geographical Revenue
Minda Corporation’s revenue distribution by region shows that India contributes 88 percent, while Europe and North America account for 7 percent and Southeast Asia represents 5 percent.
Financials
Turning to the company’s financials, Minda Corporation Ltd reported Q1 FY25 revenue of Rs.1,192 crore, marking a 10.88 percent increase from Rs.1,075 crore in the same quarter last year. Profit After Tax (PAT) rose by 42.22 percent to Rs.64 crore, up from Rs.45 crore in the previous year’s quarter.
Company Overview
Minda Corporation Limited specializes in manufacturing automotive components, focusing primarily on the production and assembly of safety and security systems and their related components for the automotive industry.
Written by – Siddesh S Raskar
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