Minda Corporation Ltd

- The company typically spends about 5% to 6% of its topline on depreciation. - Of this, approximately 2% to 3% is allocated to R&D. - Around 1% to 2% goes into greenfield projects or plant operations. - Another 1% to 2% is spent on regular maintenance capex. - In fiscal 2022-23, the company capitalized about INR 280 crores in capex. - The full-year impact of this depreciation and increased capacity utilization is expected in coming quarters. - There is ongoing investment in local adaptation and field trials for advanced products like ADAS (Advanced Rider Assistance Safety Solutions). - The company also evaluates potential diversification opportunities, including partnerships, organic growth, and investments in startups for additional growth. - A current strategic investment includes an equity investment under review by the Competition Commission of India (CCI).

- Minda Corporation targets long-term growth of about 20%+ year-on-year in revenues and volumes. - Committed to outperforming industry growth with innovations, premiumization, and new customer acquisitions. - Growth levers include: - Improving wiring harness division EBITDA from single-digit to double-digit within 2 years. - Expanding exports and aftermarket segments. - Enhancing product mix in commercial vehicles, two-wheelers, and four-wheelers, including EVs. - EV segment penetration expected to grow from current 4-5% to 10-20% over coming years. - Lifetime order wins (INR 3,000 crores in Q1 FY24) will contribute to future sales, with a 2-3 year ramp-up to peak production. - Focus on technology, in-house R&D, operational excellence, cost leadership, and increased productivity to support growth. - Export sales expected to recover gradually from Q3 FY24 onwards.

- Minda Corporation targets long-term revenue growth of about 20%+ annually. - EBITDA margin goal is to reach approximately 12%-13%, up from the current ~10.7%-11%. - Major growth drivers include: - Wiring harness division improving from single-digit to double-digit EBITDA within two years. - Expansion in exports, aftermarket, and premiumization across commercial vehicles, two-wheelers, and four-wheelers. - Increasing proportion of EV-related product sales (currently ~6% of revenue, expected to grow). - Operational excellence focus to enhance productivity, reduce raw material, and working capital costs. - EBITDA margin improvement expected but not targeting 15% in near term. - Profit after tax margins likely to improve from current ~4.2% as finance cost and depreciation stabilize. - Strong order book (~INR 3,000 crores in Q1 with 50% EV share) supports future revenue growth. - Prudent capex (~5%-6% of revenue) allocated for R&D, greenfield projects, and maintenance.

- Minda Corporation Limited reported lifetime order wins of approximately INR 3,000 crores in Q1 FY24. - Of these, around INR 400 crores are replacement businesses, and about INR 2,600 crores are new businesses. - Exports account for approximately INR 138 crores of the order wins. - In FY22, lifetime order wins were about INR 1,500 crores and INR 2,600 crores in FY23. - Orders typically take 1.5 to 2 years for start of production, with the peak revenue expected 2 to 3 years from order win. - For the INR 1,500 crores order book won earlier, approximately INR 350-400 crores revenue is expected annually, with production starting in H2 FY24 and peaking in FY25. - 50% of recent lifetime orders are from the electric vehicle (EV) mobility segment. - A significant battery charger order worth Rs. 750 crores lifetime was won from a leading OEM.

- As of the Q1 FY24 earnings call (August 03, 2023), the net debt stood at INR 462 crores as of June 30. - The management has not provided any specific update or guidance regarding new fundraising through debt or equity during the call. - There was a mention of an equity investment in a listed company under review by the Competition Commission of India (CCI), but no updates on new fundraising tied to that. - The company continues capital expenditure primarily funded through existing resources, maintaining consistent capex levels (~5%-6% of topline). - No explicit plans or announcements for fresh debt or equity fundraising were disclosed in the discussed period.