Minda Industries Limited Q3 FY22 Earnings Conference Call Insights

Key highlights from Minda Industries Limited (MINDAIND) Q3 FY22 Earnings Concall

 Q&A Highlights:

• Aditya Jhawar from Investec Capital asked about the breakup of order book of the INR400 crore on EV components between engineagnostic, and new age EV component. Sunil Bohra Group CFO replied that it includes both the existing components and the EV specific components as well. However, the company can’t share the order book split.

• Aditya Jhawar from Investec Capital also asked about profitability on EV components vs. component like switches and light supplied to EV, how different it is from the base segment profitability. Sunil Bohra Group CFO said profitability is broadly in line with existing margins for EV components or the traditional components; not very significantly different.

• Aditya Jhawar from Investec Capital asked about the capex for the next three years. Sunil Bohra Group CFO replied that in terms of sustaining capex at current level of operations, it will be roughly in the existing range of around INR300 crores, which includes not only sustaining but also includes the incremental brownfield capex needs. So it will be INR300 plus-minus, some 10% here and there.

• Ronak Sarda from Systematix enquired about production and run rate for alloy wheel in 3Q22. Sunil Bohra Group CFO replied that on alloy, production during the quarter for two-wheeler was roughly around 60% to 65% of the company’s capacity from the three lines. Fourth line has just been commissioned.

• Mukesh Saraf from Spark Capital asked about the PLI scheme, and what products the company has applied for. Sunil Bohra Group CFO said that the products are basically, sensors, controllers, ADAS and EV specific products. And the company also expects the second list to come out soon, and then those components will also be added.

• Mukesh Saraf from Spark Capital clarified that the partnership firms that now the company is investing in, if they largely generate all their revenues only from MINDAIND right now. Sunil Bohra Group CFO said that the partnership firms generate all their revenues only from MINDAIND right now.

• Nikhil Kale from Axis Capital asked about the LED headlamp order, more color on the order, size etc. Sunil Bohra Group CFO replied that the LED business once it gets into SOP in FY24, the annual value from only this one module will be roughly INR60 crores per year.

• Nikhil Kale from Axis Capital also asked about the existing order book of some projects and OEM, if it has started getting into production. Sunil Bohra Group CFO answered that all these LED businesses MINDAIND has got in last 10, 12 months, they are all linked to the upcoming model launches for all its customers, which are slated for FY23, ’24 onward. So obviously, it will be productionized as and when the customer is ready for its model launch.

• Mumuksh Mandlesha of Emkay Global asked about the revenue for the first nine month for the 2-wheeler alloy wheel and what is expect for FY23. Sunil Bohra Group CFO replied that for the first nine-months, the 2-wheel alloy wheel revenue was roughly INR200 crores. For FY23, MINDAIND is going to target between 90-95% of the capacity, which should be more than INR450-500 crores.

• Mumuksh Mandlesha of Emkay Global also asked about the revenue for the first nine month for sensors and the expected revenue for FY23. Sunil Bohra Group CFO said that sensors for the first nine months was roughly INR140-odd crores. And for FY23, the company is targeting around INR250 crore kind of range.