Minda Corporation Limited — Important, 27-01-2025: Updates

CRISIL has reaffirmed Minda Corporation Limited's long-term credit rating at CRISIL AA- and revised the outlook from Stable to Positive. The short-term rating remains at CRISIL A1+. The positive outlook reflects expectations of ongoing improvements in Minda’s business risk profile, fueled by strong market positioning, diversified product offerings, and a robust customer base within the automotive component sector. In H1-FY25, Minda reported revenues of approximately Rs. 2,482 crore, achieving nearly 9% year-on-year growth. The company is projected to reach total revenues between Rs. 4,900 crore and Rs. 5,000 crore for the full fiscal year 2025. Operating margins improved to 11.2%, with expectations to maintain between 11.0% and 11.5% through 2026. Financial risk remains manageable, with a strong net worth expected to exceed Rs. 2,000 crore and gearing levels anticipated to stay below 0.6 times. The recent strategic 49% acquisition of Flash Electronics enhances Minda's offering in powertrain and EV components, increasing potential growth opportunities and competitive advantages.