Minda Corporation Limited, the flagship company of Spark Minda, today announced its financial results for the fourth quarter and the financial year ended March 31, 2024. The company reported its highest-ever operating revenue of Rs. 1,215 Cr in Q4, marking a growth of 13.1% YoY. The EBITDA margin stood at 11.4%, an increase of 52 bps YoY. The Profit After Tax (PAT) was reported at Rs. 71 Cr with a margin of 5.8%.
For the financial year 2024, the company achieved its highest ever operating revenue of Rs. 4,651 Cr, with a growth of 8.2%. The EBITDA margin was 11.1%, an increase of 33 bps YoY. The PAT for the year was reported at Rs. 227 Cr with a margin of 4.9%.
As the company ends the FY on an impressive note, we speak with Mr. Aakash Minda, Executive Director at Minda Corporation. Our conversation will delve into the company’s current initiatives, preparations for participating in the Electric Vehicles ecosystem, potential growth areas, diversification plans, and future projections. In this interview, Mr Minda shares insights on how Spark Minda is shaping its journey amidst industry transformations and what the future holds for the brand. Let’s dive in
Can you briefly describe the core business of Spark Minda and its key products/services?
- Spark Minda has been a significant player in the global automotive industry for over six decades. We are one of the prominent manufacturers of automotive components for the OEMs and Tier-I suppliers.
- With over 16,000 employees spanning 30 plants [28 domestic + 2 international] across 6 countries Spark Minda is currently driving 9 strategic partnerships.
- Spark Minda delivers comprehensive mobility solutions for both two-wheelers and passenger vehicles and commercial vehicles.
- The specialized divisions are Mechatronics and Vehicle Access Systems, Information and Connected Systems, Interior Plastics, Advanced Technologies, for B2B and an Aftermarket Division, serve as a one-stop destination for all automotive requirements for our B2C customers.
| Division | Products Manufactured by Spark Minda |
| Mechatronics | Ignition Switch cum Steering Locks, Smart Key Systems, Mechatronics Handles and Immobiliser System, Die Casting Components, Starter Motors and Alternators |
| Information and Connected Systems | Wiring Harness, Connectors, Terminals, Components; Instrument Clusters, Dashboard, Sensors like speed, temperature, position, pressure, exhaust gas etc; |
| Interior Plastics | Air Vents, Glove Boxes, Centre Consoles, Cup Holders, Ash Trays, Louvers, Oil Slumps, Cylinder Heads, And Battery Trays |
| Advanced Technologies | DC-DC convertor, Battery charger, Motor controller, Intelligent Transport system, Telematics, Connected Clusters, MFECU, Vehicle Control Unit (VCURod Antenna, Micro Pole Antenna, Shark Fin Antenna, LF Antenna |
With a strong expertise in Electronic Control Units (ECUs), the company ensures advanced technology and reliable performance across vehicle platforms, reaffirming its position as a trusted industry leader.
What are the major changes you have observed in the auto industry landscape over the past few years?
Indian auto industry is the fastest growing market in the world is transforming towards creating and offering smart mobility solutions for its customers. Technology is the key parameter in this transformation and hence it is most relevant for Indian companies to adapt and adopt these technological challenges at a faster pace to overcome global competition.
How is Spark Minda adapting to these changes in the auto industry?
Spark Minda is a technology company and is transitioning towards becoming an advanced technology solutions provider. With a strong focus on innovation and the development of cutting-edge automotive products, our investment in R&D has doubled over the past three years, enabling us to stay at the forefront of technological advancements.
What strategies is Spark Minda implementing to prepare for the rise of Electric Vehicle revolution?
We have a robust strategy to ensure our strong presence to be a partner of our customer in EV segment. Our Electric Vehicle (EV) order book has increased sevenfold in just three years, demonstrating our strong position in the evolving automotive market and our ability to meet the demands of future mobility. Moreover, we are equipped with the best-in-class testing facilities, including EMC/EMI, Hardware-in-the-Loop (HIL)/Software-in-the-Loop (SIL), and Surface Mount Technology (SMT) facilities, along with a unique design studio. These facilities empower us to ensure the quality and reliability of our products, driving customer satisfaction and loyalty. Going forward, we will continue to drive innovation, deliver advanced automotive solutions, and play an active role in shaping the future of mobility.
Could you share some insights into the company’s research and development efforts towards EV technology?
We have 2 R&D facilities in Pune and Bangalore respectively apart from a strong manufacturing network in India and global markets. Our teams work on the principle of Connected HIVE mind structure and hence we learn – unlearn within our eco-system to create new age mobility solutions with key focus on EV technology.
What are the growth areas that Spark Minda is currently focusing on?
We will continue to focus on growing our legacy portfolio while targeting new business through aggressive investment in R&D for future technologies.
We are aggressively moving ahead to leverage the fast-emerging opportunities in the Electric Vehicle (EV) sector. Going forward, we expect domestic demand to remain strong, based on improved consumer sentiments, product premiumisation for urban centres, and new vehicle launches. Our focus on premiumisation, technological advancement, coupled with robust testing infrastructure and increased research and development investments, positions us for continued success in the dynamic automotive landscape.
Spark Minda Business Performance in the past 4 years
Spark MINDA is a customer driven organisation and we value our relationship with our customers and investors. Over the past four years [FY20-24], Spark Minda has made remarkable progress, with our revenue doubling and significant improvements in margins. Our revenue has grown steadily at a compounded annual growth rate [CAGR] of 25%, while our EBITDA has seen a remarkable CAGR of 33%.
Our Electric Vehicle (EV) order book has increased sevenfold in just three years, demonstrating our strong position in the evolving automotive market and our ability to meet the demands of future mobility. Moreover, we are equipped with the best-in-class testing facilities, including EMC/EMI, Hardware-in-the-Loop (HIL)/Software-in-the-Loop (SIL), and Surface Mount Technology (SMT) facilities, along with a unique design studio. These facilities empower us to ensure the quality and reliability of our products, driving customer satisfaction and loyalty. Going forward, we will continue to drive innovation, deliver advanced automotive solutions, and play an active role in shaping the future of mobility.
How does Spark Minda plan to achieve the growth targets?
Our focus is clear : Expand our business portfolio through new investments, enhance localisation, technology collaborations and partnerships creating meaningful value for customers, investors, partners and employees. Ensure R&D efforts are towards creating new age mobility solutions and manufacturing units make the best product at competitive pricing.
We believe if our internal ecosystem is robust ; we will make our stakeholders as life time partners and further make Spark Minda the most loved and admired brand of India.
What challenges do you foresee in achieving these targets and how is the company planning to overcome them?
First ; As we are witnessing rapid technology transition in auto industry; we feel procuring right talent and nurturing it for the future is biggest challenge. At our end we are trying to absorb best talent ensuring future growth and success of the company by offering meaningful solutions tour customers.
2nd: Industry is also witnessing significant geopolitical headwinds compounded by sluggish growth in the commercial vehicle and a decline in tractor sales however we have shown resilient performance YOY creating wealth for our investors. We are continuously focusing on localisation, creating trust within our partners though healthy collaborations and maintain healthy cost benefit to customers.
How does Spark Minda plan to balance its growth aspirations with its commitments to sustainability and social responsibility?
Spark Minda prioritizes sustainable operations, placing particular emphasis on the efficient management of materials, energy, emissions, water, effluents, and waste. By conscientiously addressing these areas, we exemplify our dedication to environmental responsibility and contribute to the ongoing trend of sustainability in the business world. Spark Minda is dedicated to generating value for all stakeholders by providing solutions that support sustainable mobility. The company’s ‘Sustainability Policy’ outlines its philosophy and strategy for managing key aspects such as Ethical Business, Sustainable Operations, Responsible Value Chain, Care for People, and Inclusive Growth within its sustainability framework. This approach helps minimize environmental impact while maximizing value for stakeholders.
Our team has made significant strides in the Electric Vehicle (EV) sector, establishing an internal R&D facility dedicated to developing high-quality, scalable, and cost-effective EV solutions. This strategic move not only minimizes our environmental footprint but also enhances value for all stakeholders.
Sustainability is integrated into every facet of Spark Minda’s value chain. The company is adopting innovative products and lifecycle management practices, along with promoting local sourcing to reduce its carbon footprint. Furthermore, efforts to minimize environmental impact are evident through initiatives in material management, energy efficiency, emissions reduction, water conservation, and waste management across its operations. Moving forward, we remain committed to implementing further environmentally conscious and socially responsible measures across our business practices
Further, Minda Group, founded by the late Shri Shadi Lal Minda, follows his legacy of “Social Change for Nation Building.” Since 2014, it has formalized its Corporate Social Responsibility (CSR) efforts in line with the Companies Act of 2013. The Group’s CSR focuses on education, skilling, livelihood promotion, women empowerment, healthcare, empowerment of people with disabilities, and environmental sustainability. The Spark Minda Foundation (SMF) was established in 2014 to oversee these initiatives in the rural and semi-urban areas of the five states where the company operates: Uttar Pradesh, Maharashtra, Uttarakhand, Tamil Nadu, and Haryana. SMF’s vision is to create a sustainable society by improving quality of life, protecting the planet, and promoting integrated and inclusive growth. The foundation collaborates with like-minded institutions and designs programs for scalability and replicability. SMF’s mission includes providing education to the underprivileged, empowering youth through skill development, facilitating healthcare services, improving infrastructure, protecting the environment, and empowering people with disabilities for a dignified life.
What role do you see Spark Minda playing in the future of the auto industry?
We want to be the most innovative Technology Driven organisation offering new age mobility solutions to our customer. To achieve this our goal is continue to strengthen our traditional business portfolio through strong innovation while also strongly expand in new age electric mobility solution to OEMs. Our efforts are to strengthen our R&D capabilities at Spark Minda Technical centre while adapting at manufacturing 2.0 practices at our plants to create great products for the entire auto industry.
Overall we want to be lifetime partner of our customers.