Credit Rating upgraded by India Ratings & Research (Fitch)
The Board has declared an interim dividend of Rs. 0.20 per equity share (10% of face value)
New Delhi, India, February 14, 2017 – Minda Corporation Limited (referred to as “Minda Corp” or the “Company”; NSE: MINDACORP, BSE: 538962), a leading automotive component and flagship company of Spark Minda, Ashok Minda Group, announces its Q3 FY2017 results, in accordance with Indian GAAP.
“On the backdrop of demonetization which drastically reduced the liquidity in the market, sales volume for the quarter across the automobile sector were down by (4.0)% on a y-o-y basis in comparison to the 19.1% y-o-y growth in the last quarter. Despite a sustained pressure on the overall business demand and a slow global recovery, our topline during Q3 FY2017 was resilient, registering an increase of 10.1% on a y-o-y basis. Besides, the quarter marked continuing addition of new blue chip customers globally and received additional orders worth Rs. 180 crore.
We are optimistic of the various pro-reformative measures of the Government being undertaken and also reflected in the recent fiscal Budget augurs well for the auto component sector as a whole in the long term, and we expect the automobile market to revive over the next two quarters”
“This quarter has been a mixed bag for the Company. During the quarter, our financial performance was temporarily impacted on account of demonetization, high raw material cost, adverse product mix and delay in price actualization of one of the subsidiaries. We are also in the process of incurring pre-operating expenses towards new greenfield plants at Mexico and Pune and setting up of the technical centre. However, I am pleased to inform you that our credit rating has been upgraded to ‘IND A+’ for long term bank facilities by Fitch Ratings, reinforcing the credit worthiness of the Company.
We are also closely watching the developments to the full roll out of the GST and continue to be hopeful of its positive implications for the automotive and automotive component industries.”