Minda Industries zooms 9% despite fall in Q4 PAT; here's why

Shares of Minda Industries shot up 8.5 per cent in early trade on Wednesday as investors cheered firm growth in revenues even as the auto component maker's consolidated net profit dropped 5 per cent on-year in January-March.

The company reported a 5 per cent decline in consolidated profit after tax at Rs 156 crore in the fourth quarter ended March. The company had posted a consolidated net profit of Rs 164 crore in the same period of the previous fiscal.

Consolidated revenue from operations during the quarter under review stood at Rs 2,415 crore as compared to Rs 2,238 crore in the year-ago period.

The company’s share price rose to a high of Rs 906.45 as against Rs 835.10 at the previous close on the BSE.

For the fiscal year ended March 31, 2022, consolidated PAT was at Rs 413 crore as compared to Rs 248 crore in the previous fiscal, a growth of 66 per cent, the company, which is a part of the UNO Minda group, said.

Consolidated revenue from operations stood at Rs 8,313 crore in FY22, its highest ever, as against Rs 6,374 crore in FY21, it added.

Despite turbulent times for the auto industry on the back of a shortage of semi-conductors, rising input costs, geopolitical tensions, the company was able to register growth in its revenues and profitability, UNO Minda Group CMD Nirmal K Minda said, according to a PTI report.

"We believe that the auto industry is at the cusp of revival, with favourable government policies, with more and more new product launches planned by OEM's for the coming year, we are optimistic of the demand scenario and sentiments improving going forward," he added.

Minda Industries said its board has recommended a 50 per cent final dividend at the rate of Re 1 per equity share of the face value of Rs 2 each, along with an issue of bonus shares in the ratio of 1:1.