Minda Corporation Limited (NSE: MINDACORP) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Aakash Minda — Executive Director
Vinod Raheja — Group Chief Financial Officer
Analysts:
Unidentified Participant
Ronak Mehta — Analyst
Raghunandhan NL — Senior Research Analyst
Shubham Bhatra — Analyst
Mithul Shah — Analyst
Dhananjay Mishra — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q4 and FY25 results conference call of Minda Corporations Limited hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Mehta from ICICI Securities. Thank you. And over to you sir.
Ronak Mehta — Analyst
Thank you, Pooja. Good evening everyone. On behalf of ICICI Securities I would like to welcome you all to Q4FY25 earnings conference call of Minda Corporation Limited. Today we have with us from the management team Mr. Akash Minda Executive Director, Mr. Vinod Raheja Group CFO, Mr. Sameer Sharma, Group Head Strategy and MNA and Mr. Nitesh Jain, Lead Investors Relation. I would like to thank the management for giving us this opportunity. I’ll now hand over the call to the management for their opening comments post which will open the floor for Q and A. Over to you sir.
Aakash Minda — Executive Director
Good afternoon everybody. Thank you Ronak. And thank you ICIC securities for hosting this call. Good afternoon everyone and welcome to the quarter four and financial year 25 earnings conference call for Minda Corporation Limited. I hope you’re all doing well. It is a pleasure to connect with you today and present the company’s performance for the quarter and and the full financial year along with the key developments across the businesses. Before we begin, I’d like to take a moment to introduce Mr. Ajay Agarwal who has joined us as President finance and strategy. Mr. Agarwal is a Chartered Accountant and lawyer.
Brings over 24 years of experience in the areas of strategy and finance. We believe his commercial acumen, capital market expertise and strategic mindset will be key in shaping the next growth phase of our growth. We would like to welcome him. As FY25 concludes. The Indian automotive industry continued to navigate a dynamic environment with resilience. Amidst global macroeconomic challenges. The industry demonstrated stability particularly in key vehicle segments. The two wheeler segment recorded steady growth led by premiumization, higher EV adoption, improved financing access and deeper urban penetration. Passenger vehicle demand was driven by a consumer shift towards SUVs and hatchbacks.
The commercial vehicle segment saw a 3.3% decline in production volumes impacted by infrastructure project and delay in monsoon disruptions. In contrast, the tractor segment posted modest growth aided by favorable rural sentiment, government support and a good monsoon. Overall, the industry delivered about a 6% year on year growth in quarter four underpinned by increased EV traction, product premiumization and rising consumer affordability. Now reflecting on the company performance, Minda Corporation continued to strengthen its market position. In quarter four FY25 the company surpassed consensus estimates delivering highest ever quarterly revenue of 1321 crores, a growth of 9% on year on year basis.
The company reported highest ever EBITDA of 153 crores along with the highest ever margin of 11.6% for the quarter, demonstrating strong operational execution and the effectiveness of our strategic initiatives. Profit before tax for the quarter stood at 65 crores with a margin of 4.9%. PAT for the quarter 4 FY25 stood at 52 crores with a packed margin of 3.9%. This was impacted by higher finance cost associated with the strategic investment in Flash Electronics and increased depreciation stemming from ongoing capacity expansion and technological upgrades. These strategic investments are expected to deliver and drive accelerated growth in the future.
For the full year FY25 the company delivered highest ever annual revenue of 5056 crores registering a growth of 9% year on year basis. The company reported highest EBITDA of 575 crores, a growth of 12% year on year with a margin expansion of 31 basis points with PAT for the full year stood at 255 crores making a growth of about 12.5% year on year basis. These results reaffirmed the company’s focus on sustainable growth and and consistent profitability through growth oriented capital allocation strategy. Our strategic initiatives continue to drive growth and enhance our competitive position in the financial year 25.
Some of the key highlights are in January 2025 Minda Corporation entered It entered into a strategic partnership through the acquisition of 49% stake in Flash Electronics, a key player in powertrain and EV components in India. It is designed to offer complete system solution and capture a greater share of the fast growing automotive and EV segment in India. This partnership opens up a new avenue for diversification through partnerships adding powertrain and powertrain electronics as a new avenue for growth for the company. During the year. The company also booked a lifetime order exceeding 8,000 crores with approximately 25% of the new orders coming from the new energy.
operator
Ladies and gentlemen, the line from the chairperson seems to have disconnected. Please stay connected while we reconnect them. Thank you for your patience. We have the management line connected. Please go ahead sir.
Aakash Minda — Executive Director
Sorry for the network, I would like to continue. During the year the company booked lifetime orders exceeding 8,000 crores with approximately 25% of new orders coming from electric vehicle platforms. This underscores our increasing traction in the new energy vehicle which continues to be. Our strategic focus area. In quarter four, EV sales stood at about 8% of the Minda Corporation’s total revenue and on full year basis it is approximately 7%. Flash Electronics has its 23% of its revenue coming from EV products which is a 92% growth over previous year.
The company also filed 30 new patents during the year taking our total IPR portfolio to over 300, further strengthening our leadership in automotive innovation. These patents cover a wide range of products and technologies. Lastly, our commitment to innovation remains central to our strategy where we invested over 4% of our revenues on R and D initiatives through our in house RD center in Pune and Bangalore supported by a team of more than 900 focused engineers on next generation automotive technologies.
Looking ahead, we remain focused on executing our strategic priorities. Our efforts to enhance system solutions offering, strengthening our customer relationships and investing in new technologies and strong focus on operation excellence will continue to drive the growth in FY26 and beyond. Now I will take you through the presentation which is uploaded online. I request you to look at page number two which shows the snapshot of Spark Minda Group or Minda Corporation Limited at the full year we are about 7,500 crores at group level and consolidated revenue stands at 5,056 crores. With more than 32 plants, 18,000 people and 5 business verticals, we have 6 joint ventures and 5 technical license agreements across the world.
Moving on to the next slide which shows the Indian automotive industry performance for the quarter four we can see the industry grew about 6% year on year basis driven by a strong growth of about 5.8% in two wheelers. On a full year basis the overall industry grew by 9% led by two wheeler industry growth by about 11%. Moving on to the next slide on the quarter four and the full year business performance creased strategic developments. For the quarter four the company delivered its highest quarterly revenue of 1321 crores, delivered also the highest ever EBITDA margin at 11.6% which is a growth of 17 basis points.
We secured multiple export orders for Wiring harness in particular with lifetime order book of 700 crores we acquired 49% stake in Flash Electronics where the transaction stands now completed. We also filed more than 13 patents during the quarter. For the full year the overall revenue grew by 9%. We delivered the highest ever EBITDA margin at 11.4%. Secured lifetime orders worth more than 8000 crores during the full year signed three new strategic partnerships filed more than 30 patents taken to 300 plus. Now moving to the next slide which shows a snapshot of the capex in our new facilities.
From the top left we can see the die casting facility coming up in Pune which is our fifth plant. On the extreme right you will see the die casting Gritinoida facility in north which is our fourth plant Brownfield expansion in our starter motor alternator division in north India. In the bottom left you can see our third plant of Minda Instruments which is an instrument cluster plant. The new shifting of the spark Minda technology center and last not the least is the wiring harness component divisions for the localization of of our connectors is also expanded and facilities set up.
Moving on to the next slide which gives a snapshot on the performance of the Flash electronics. In line with our estimation Flash electronics has delivered 1537 crores for the full year EBITDA at about 223 crores with a margin EBITDA margin of 14.5% and EV revenue stands at 23% which is a 92% growth on year on year basis we have two large verticals which is the electrical and electronics and powertrain components. There are six facilities in India and two facilities in Germany and Hungary with a technical center in Poland. On the right side you will see the revenue has grown from 1,340 crores to 1537 crores which is a jump of 15% and EBITDA has grown from 198 crores to 223 crores which is a jump of 12% and at a 14.5% margin and the PAT margin has gone to 5.6% with the PAT at 86 crores.
Moving on to the next slide which shows the financial highlights of Minda Corporation for the quarter. On the top you will see the revenue has grown 9% from 1215 crores to 1321 crores. At EBITDA we have gone from 139 crores to 153 crores from 11.4% to 11.6% and at PAT margin we have gone from 71 crores to 52 crores where we can explain later on account. Of the interest cost due to flash electronics investment.
On the full year basis the company revenue has grown from 4651 crores to 5056 crores which is a growth of 9% and EBITDA has grown by 12% from 514 crores to 575 crores. Jump of 30 basis points from 11.1% to 11.4% and PAT margin goes from 227 crores to 255 crores. In view of this, the board of directors has recommended a final dividend of 45% on the face value that is 90 paisa per equity share totaling to 70% on the overall business vertical performance on the next slide. So our mechatronics and aftermarket Division grew from 590 crores to 654 crores marking 11% jump and Information and Connected Systems moved from 625 crores to 667 crores showing a 7% jump on a full year basis.
On the right side, the mechatronics division has increased its revenue by 10% from 2,251 crores to 2,475 crores and the Wiring RF Instrument Cluster Division has grown from 2,400 crores to 2,581 crores marking 8%. Moving to the next slide which shows the revenue breakup by products and geography. Wiring harness continues to be about 28%, vertical access 24%, die casting 16%, clusters 16% and others which includes our sensors, EV products, other electronics is growing to 16% now by geography India continues to be majority at about 88%, our exports are about 7% and Southeast Asia locations which is Indonesia and Vietnam contribute about 5%.
By end market two wheelers and three wheelers contribute largest which is 47%, commercial vehicles 28%, passenger vehicles about 14% and aftermarket about 11%. Moving on to the slide 10 which shows the consolidated leverage position for the year. On the extreme right column the net worth stands at 2,200 crores but the long term borrowing has gone up to 528 crores. The gross debt stands now at 1344 crores. The net debt is 1250 crores. With the capital employed in 1975 crores the ROCE is 20% and net debt to net worth is 0.6 times and net debt to EBITDA which is including 49% of flash, EBITDA is 1.8 times going on to the next slide which is slide 11 shows the trend across various key financial matrices for Minda Corporation over the last five years where the consolidated revenue has grown from 2,368 crores to 5,056 crores.
EBITDA margin has gone from 9.2% to consistent and sustainable 11.4%. RoC has gone from 12% to now 20%. EPS has gone from 2.2 times to 10.7 and market capitalization has gone from 2,400 crores to about 13,000 crores. Now. Moving on to the next slide which is on the ESG and csr. What I would like to share here is that Minda Corporation has a sustainable and ESG committee formed which is led by our board of directors and we are focused on reducing our carbon footprint by 42% by 2030. We are focusing on sustainable operations, care for people, ethical businesses, inclusive growth and responsible value chain. In the next slide it shows few prestigious awards that we have got from the President of India for our initiatives for people with disabilities.
Moving on to the next slide shows some of the other awards and initiatives in our responsibilities for the corporate governance as well as some key awards given to us by our key and important customers. In page 16. With this I would like to conclude my presentation and furniture that are available. In page 18 and 19. I will now request to open the floor for questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembled. The first question is from the line of Raghunandhan from Nuvama Research. Please go ahead.
Raghunandhan NL
Good evening sir and thank you for the opportunity. Appreciate Promoter family commitment for equity investment at 550 rupees per share. Any timeline for this investment that you can share?
Aakash Minda
Yes. Hi Raghu. I’ll request Vinod Zaija to please answer this.
Vinod Raheja
Yeah, we were required to sort of hold the postal ballot the voting of which completed by end April. We are expecting the stock exchanges approval within this week. And the 25% of the money should be received max within two weeks and thereafter as per the terms, the balance 75% can be paid by the promoters within 18 months.
Raghunandhan NL
Got it sir. Thank you for that. On the sunroof plant, is it on track to start operations in Q1 FY26. How much revenue can we expect in FY26? And based on the capacity, what can be the peak revenue?
Aakash Minda
So Raghu, the revenues will not be in FY26 as we have committed before. The revenues will be starting from FY27. The plant which is next to our facility in the Pune region is in progress. And since this is a 5050 joint. Venture it will be treated as an associate company.
Raghunandhan NL
Got it, sir. For full year FY25 how much should be your sensors revenue? And also specifically EV parts like Charger converter. How much would be the revenue in FY25? And how do you see the outlook ahead given the strong order book which is more skewed towards EV business?
Aakash Minda
Yeah. So the sensors portfolio for the Spars. Minda Corporation is spread across multiple products. Some of them are the legacy and already implemented. Some of them are new. But for the current year our census revenue is in the tune of about 250 to 300 crores. This is expected to grow further while we are localizing many sensors in India. And some of the new sensors are. Also going SOP in the next few quarters to come.
When it comes to the EV penetration of our products. As I mentioned the overall in quarter. Four the EV as a percent EV platform as a percentage of total sales stood at about 8%. For the full year it is about 7%. And this is expected to grow further while we are launching new and new products and our SOP of the new products are happening. But as I mentioned Flash Electronics is having now out of their revenue of 1500 crores. They have 23% revenue coming from EV products and EV platforms which is a 92% jump year on year.
Raghunandhan NL
Thanks for that sir. And on Flash, you know like Minda and Flash there is a potential for cross selling and medium term potential can be as high as 500 to 600 crore. But in near term FY26, 27, how much cross selling can we expect? Also there are synergies between Minda and Flash. Anything, any status or any plan you can indicate where joint sourcing could lead to cost savings.
Aakash Minda
Yeah. So the joint synergies in terms of. Sourcing and other things have already started. And of course starting from quarter one there’ll be benefits that can be seen when it comes to the joint sourcing. Number two, when it comes to the cross selling of the products we’ve already identified three important areas for cross selling. Of course these products such as die casting or wiring harnesses and electronic components needs end of end customer approval. So that is already underway and hopefully by end of the year we shall have these in SOP. And by FY27 we can see maybe close to a three digit number coming into SOP across selling.
Raghunandhan NL
Got it, sir. For Flash, FY25 was a strong year. And how do you see or how do you look at the expectations for FY26? And Flash had showcased product readiness for motors in PV and CV categories. Has there been any other wins, any timeline for SOP there?
Vinod Raheja
So Raghu, the growth momentum in the revenue of Flash electronics should be again in the similar range that they have been doing for the last few years. So again in the range of mid to high double digit percentage. Of course it depends on how the EV penetration is. That’s one number two on the new product development through the tech center. And and now with Ninja, there are multiple products which are being developed across segments. So we are again working with a couple of customers in India and we showcase the products. So as and when we move forward we’ll update you on winning businesses. But yes, they’re under development and already being showcased to the customers.
Raghunandhan NL
Thank you sir. I’ll fall back to the queue before I come back.
operator
Thank you. Sir, we request you to rejoin the queue for follow up questions. The next question is from the line of Shubham Bhatra from Ambit amc. Please go ahead.
Shubham Bhatra
Hi sir. Thanks for taking my question. I just wanted to ask that in the diepasting business there is a Yoyo of roughly 40% for the quarter. Any particular reason for that?
Aakash Minda
Sorry, can you speak a little louder please?
Shubham Bhatra
Yes sir. In the die casting business there is a yoi Group of 40%. Any particular reason for that?
Aakash Minda
Sorry, in die casting yoy for what please?
Shubham Bhatra
For the quarter there’s a degrowth in the diecasting business. Revenue.
Aakash Minda
No, sorry, where does it say degrowth? Yeah, no, where there is no die casting. Yeah, no, there is no degrowth. By the way, the die casting division has grown year, on year and quarter on quarter basis. So our die casting division has overall. Grown on quarter on full year basis. The die casting division has grown by. About 15.5, you know, 5%. And on quarter, on full quarter basis we have grown by about again 15 to 16% .
Shubham Bhatra
Okay. Okay. Thank you.
Aakash Minda
Thank you.
operator
Thank you. Participants who wish to ask questions may press star and one. I repeat, to ask a question, you may press star and one. The next question is from the line of Mithul Shah from Dam Capital. Please go ahead.
Mithul Shah
Thank you for the opportunity and congratulations for strong margins in this tough Environment. The first question on utilization, if you can give some ballpark number for both the segments approx. Blended average utilization for Mechatronics division as well as for the connected system.
Aakash Minda
Again it depends on the various segments. Various plants, various divisions depending on the products as well. But overall we as an organization are currently working to the tune of about 65 to 80% of utilization. So different segments, different plants will have that variation.
Mithul Shah
Second question is again follow up to Raghu’s question on synergy with Flash. Any thought process on joined R and D to develop completely new product segment or product line itself and on terms of energy on the R and D side.
Aakash Minda
Yes that work has already started. Our both engineering teams from our technical center and their Poland team have already started coming together to design and develop products. As you know that Flash Electronics is an expert in the powertrain related products and Minda Corporation offer power electronics. So together we are developing products like XIN1 for different segments and they’re already underway. So some of them were also showcased in the Bharat Mobility and of course as we move forward this is being only showcased individually to customers when they visit our tech center as well as to the products as well as to the customers at their doorsteps.
Mithul Shah
Okay, last question on this order book your initial remark you highlighted something 8,000 crore plus type of. But can you give more details in terms of EV orders and within EV two wheelers mainly or anything on the four wheeler side?
Aakash Minda
Yeah. So EV order books are about 25%. Of this 8,000 crores lifetime. Again a few of the large orders. Have come from new segments and new product lines. So for example our wiring harness division which did not have very minus fuel exports now they have won some good orders for the exports businesses which will of course help the wiring RS division as well as the group generating higher exports orders. When it comes to the other segments it is spread across product lines and. Technologies in the EV area. Particularly the orders are from two wheelers and three wheelers as that penetration is higher. So of course when we are developing more products the complete EDU system will be offered to the passenger vehicle. But Minda Corporation has also won few. EV products such as the chargers and other infrastructure related products from the four wheeler manufacturers.
Mithul Shah
Within this order book how much would we export roughly?
Aakash Minda
So order book would be What? Close to 15% would be exports.
Mithul Shah
Thanks and best wishes.
Vinod Raheja
Thank you.
operator
Thank you ladies and gentlemen, in order to ask a question you may press star and 1. The next question is from the line of Dhananjay Mishra from Sunidi Securities Please go ahead.
Dhananjay Mishra
Yeah, thanks for the opportunity. Thanks. My question is with refer to Flash Electronics. So we had about 20 crore in in impact on interest because of this like in the quarterly and on the full year basis it will be about 80 crore. So as when we acquired Flash Electronics we said that because of the cross selling and energy benefit it will be eps security from FY26 onwards. So how confident are you that it will be EPS accelerative? And secondly in this quarter also have we included in this joint which is profit number from Flash Electron for two months?
Aakash Minda
Yes, I will ask Vinod to answer. However we had said that this will be eps accredit from FY27 and for the FY25 we have only 75 days of you know consolidation at the PAT level. So Vinod over to you please.
Vinod Raheja
Yeah in the current quarter we sort of took share of profits for 75 days and in the results you can see that the share of profit of associates number that we have given is 10 crore 30 lakh rupees versus 1 crore 15 lakhs in the same period last year.
Dhananjay Mishra
So what was the conclusion from flashing that out of 10 crore entirely?
Vinod Raheja
Yeah, contribution of flash for about 75 days was 8 crore plus 8 crore.
Dhananjay Mishra
Okay, 8 crore 10. Okay. And this 420 crore promoter fund will be coming in over next 18 months. So this will be utilized towards repayment update or it will be again for the new investment.
Vinod Raheja
Well let me put it this way that we have potential norms very financial metrics that we look at while deciding our capital allocation. So it will be in line with that only is what I can say at the moment.
Dhananjay Mishra
And lastly on the depreciation part you said that this increase in deposition because of some capex we have done in some strategic things. So can you explain on that more and how it will going to contribute in a quite incremental level?
Vinod Raheja
Yeah, as you would have seen in the presentation that in the course of year we had two, three brownfield expansions in our die casting division in our sort of information and connected systems division also and the healthy order book status that we shared of more than 8200 crores we should start realizing the production from this investment that we made in this year so that.
Dhananjay Mishra
From this year itself.
Vinod Raheja
As we have, you know start. Building capacities for the order books that we have done in the past as well as the order books that are being done in the current year as well. So they will now start helping us in you know getting economies of scale once the SOP starts in the next few months for the plants that I’ve been showing and as well as the other investments that are happening. So I cannot give you a number for the FY26 per se but the order books that have been converted over the last two years they will start coming into SOP from this year onwards.
Dhananjay Mishra
Okay. And quarterly run rate for depreciation will be about 60 crore going forward 57.
Vinod Raheja
To range of about 55 crores that we have reported in this quarter.
Dhananjay Mishra
Okay. Okay. Thank you. All the best.
operator
Thank you.
Vinod Raheja
Thank you.
operator
Before we. Thank you. Before we take the next question we would like to remind participants that you may press Star one to ask a question. The next question is from the line of Raunak Mehta from ICICI Securities. Please go ahead.
Ronak Mehta
Yeah, thanks for the opportunity. I have a couple of questions. Firstly, what is the progress on the TFT cluster business? Any new. If you can just highlight new order wins in this segment and what could be the growth outlook for this segment over next couple of years?
Aakash Minda
Yeah. So see now as you know that because of the premiumization more and more TFT clusters penetration is increasing across segments. We have won orders from all segments customers including domestic and exports for the tft. So again we have been manufacturing TFT clusters and exporting them for the last three years or four years and more over the last one year we have won multiple orders from two wheelers, three three wheelers, commercial vehicle as well as passenger vehicle manufacturers. So the penetration is expected to increase in the quarters and years to come. And yes, Minda Corporation is fully ready for our infrastructure capabilities and capacities to cater to this growth.
Ronak Mehta
Sure. Any ballpark contribution, revenue contribution that you expect over the medium term from this product line.
Aakash Minda
So out of the currently about 800. Crore plus venue of the Minda Instruments Limited you can say the digital clusters contribute somewhere about 25 to 30%. And of course this is expected to. Grow to somewhere about 40% or so. In the next, let’s say 18 months. The 24 months.
Ronak Mehta
Sure. Okay. All right. My next question is on the capex plan for the standalone business and for the flash electronics for next one year or two years, however you want to guide.
Aakash Minda
I’ll ask Vinod to answer the question please.
Vinod Raheja
You know, as you can see that over last two, three years our capex has been in the range of about 200 to 300 crores. While this year we spent about 350 crores. Going forward we see the capex to remain in the range of about 250 to max 350 crores. And as regards the capex in flash is concerned again that should broadly be in the range of 50, 200 crores only.
Ronak Mehta
Okay. And for the stand on business 250 to 350 crore. Towards what area will it be? Only towards capacity. How much will be the maintenance capex if you can just help us with that.
Vinod Raheja
Well in this say in the course of next 18 months we are also talking of two greenfield manufacturing facilities of which one Akash covered in die casting and the others in information and connected systems. So it includes over the next 18 months period to Greenfield. Then of course the new businesses that we are winning capex towards that and of course some part of replacement capex.
Ronak Mehta
Sure. Okay. And last question on the debt level. So for the I can see that closing Debt as on 31st March is about 1250 crore. What is the target debt for the next year? That would be the last question.
Aakash Minda
So our objective has always been that we want to be in the clear financial prudence matrices that we have put in place and we are comfortably positioned from that perspective. Yes. While going in the next years we would like to significantly reduce this. And this is why you know the warrants from the promoters have also been you know issued. So yes, the interest is how we can bring down the 0.5 times debt to equity to about 2.2 times, you know in the next two to three years.
Ronak Mehta
All right, thank you. Thank you. That’s all from my side.
Aakash Minda
Thank you.
operator
Thank you. We’ll take our next follow up question from the line of Raghunandan from Nuvama research. Please go ahead.
Raghunandhan NL
Thank you sir for the opportunity. Again sir, for Q4 if you have it handy, can you share what is the yoy growth in various segments, vehicle access, wiring harness, die casting clusters and others.
Aakash Minda
Yes, I will explain to you broadly the growth percentages. So our security division’s growth has been more than about 11 to 12%. The die casting has grown by about 13 14%. The wiring harness has grown in single digits and our Minda Instruments Limited has grown close to 20%. These are again the highest business values per se. Of course there are small businesses or startup businesses like the EV businesses and the startup motor division etc. They of course have a much higher growth because their base is also very low.
Raghunandhan NL
Got it sir, thank you very much. On wiring harness company has been working towards localization. Recently you have tied up with Sanco. Can you indicate the progress on localization and whether you will continue on this effort and what can be the targets ahead.
Aakash Minda
Yeah, Raghu. So as you know that we started. This journey about a couple of years ago and today also we showed that we have now expanded our facilities including capacities in engineering as well as operations for higher localization in that respect itself. Currently our utilization of Minda connectors from our own wiring harness division is to the range of about 15% and for the full year also we have almost touched to that same number. Now going forward with our validations from our customers both in high voltage or EV segment and low voltage segments, this is expected to grow higher. Our target is to reach about 20 to 25% over the next 18 to 24 months and all efforts are in those directions.
From the high voltage side, we have partnered up with Danko and we’ve also won many orders from our customers for the high voltage connectors and other products that come from the partnerships such as the bus bars or the charging gun and the power distribution units etc. Which will start coming into SOP in the next few quarters to come. So overall the wiring harness division is now giving us a good sustainable. Growth.
In terms of the order books that we have explained. In terms of exports also the profitability has come to a sustainable and consistent level where we can now look at the growth of this division over the next few years to come and which includes the connection systems, the high voltage and the complete electrical distribution system as a system solution offering to the customers.
Raghunandhan NL
Thank you sir for that. And continuing on the high voltage side. EV wiring harness or high voltage. How is the traction with customers? How many customers would you be servicing in the ev? Wiring hardness across two wheeler, three wheeler.
Aakash Minda
So I mean I can’t give you a number per se, but let me say that we are supplying high voltage wiring harness to the top three EV two wheeler manufacturers. We’re already supplying them in terms of the three wheelers also the largest or the largest, all three manufacturers of the EV three wheelers. We’re supplying our high voltage kits to them. So yes, we are engaged with them and of course they are all starting up in terms of the scale up in terms of volumes. So yes, we are one businesses from the top OEMs in two wheelers and singular segments and we are also now engaged with the passenger vehicles OEMs in India and overseas for our high voltage systems, wiring harness as well as connection systems.
Raghunandhan NL
and any other wins there sir, in passenger vehicles.
Aakash Minda
I will be able to only share that soon.
Raghunandhan NL
Got it. Just a clarification on the E2 Wheeler E3 Wheeler. When we look at IC versus EV fair to assume that you are on path to sustain market share. So because of the technology transition you will not be impacted. In fact you will be able to sustain or gain market share.
Aakash Minda
Sorry, can you repeat your question please?
Raghunandhan NL
In wiring harness, compared to say ICE two wheeler market share, would EV market share be similar or better or are you on path to achieving that sustenance?
Aakash Minda
Yes, we are on the path to achieve that sustenance as well as I think the higher penetration of the connection systems. I think that’s the most important part because currently the connection systems are imported and we are one of the first companies to develop this connection systems of high voltage in India, that capability. So yes, that’s I think the first important milestone for us to reach that scale in terms of the high voltage and the local capabilities or the wiring harness are already existing in Minda Corporation.
Raghunandhan NL
Just a last question, a housekeeping question. Can you share the contribution of digital clusters in your overall clusters business and smart keys in your locking system?
Aakash Minda
So the digital clusters would be to. The tune of about 15%, 15 to. 20% of our instrument cluster business that is expected to grow higher as we are winning new orders from across segments and domestic and exports. For the spark key systems our penetration is somewhere about 15% again for the smart key systems in our revenue.
Raghunandhan NL
Got it sir, thank you very much and wishing you all the best.
Aakash Minda
Thank you.
operator
Thank you. We’ll take our next follow up question from the line of Mithul Shah from Dam Capital. Please go ahead.
Mithul Shah
Thank you for opportunity again sir, my question is on order book for Flash. If you can have some broader details, if you can share.
Aakash Minda
Mithul, with respect to the Flash order book, only thing I can share at the moment is they are consistently winning orders from their largest customer across their new segments which are getting, you know, launched also they have won recent orders for their exports business from their metallics division and from India corporation side we are also now started taking other customers of ours and they’ve already visited Flash Electronics, you know for audits as well as getting us on the bidders list. So we are on that journey and those teams have already been formed to take up these next steps. So at the moment that’s where our objective is and we are running on that.
operator
Thank you ladies and gentlemen. In the interest of time we’ll take this as our last question. I now hand the conference over to the management for closing comments.
Aakash Minda
So once again thank you very much. And Minda Corporation, we remain highly confident in our growth trajectory both in the near term and long term. Driven by strategic investments and unwavering commitment. To advancing our products and technologies. We are committed to creating value for. All of our stakeholders and shareholders. We are investing deeply in our capabilities. In terms of people, capacities, technologies and competencies across fields. And with this I would like to. Also welcome the next financial year and looking forward to meeting all of you soon. Thank you very much.
operator
Thank you. On behalf of ICICI securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.