Buy on dips
Result Update (Q4 FY20)
July 29, 2020 at 7:18:36 PM
Auto components maker Minda Crporation reported a topline of Rs. 697.93 cr in Q4 FY20 up 3.95% Q-o-Q basis from Rs. 671.44 cr reported in Q3 FY20. EBITDA for the quarter ended March, 2020 was at Rs. 38.51 cr down 49.38% from Rs. 76.07 cr reported in Q3 FY20 whereas; EBITDA margins for the quarter declined 581 bps to 5.52% mainly on account of higher losses in KTSN business, ramping up cost of BS-IV and cost related to Covid-19. Minda Corporation reported PAT of Rs. -299.77 cr in Q4 FY20 due to impairment of KTSN business.
The management has taken steps to improve profitability by discontinuing loss making business such as KTSN and cost rationalization measures. Even though coming few quarters would face some hardship due to Covid-19 and auto industry slowdown, we believe the worst would soon be behind us and recommend investors to Buy on Dips.