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Uno Minda Q2 profit rises 61 pc to Rs 182 cr; forms JV with German firm to produce EV component – EQ Mag Pro

Uno Minda Q2 profit rises 61 pc to Rs 182 cr; forms JV with German firm to produce EV component – EQ Mag Pro

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Auto components maker Uno Minda Thursday said its consolidated net profit increased by 61 per cent to Rs 182 crore in the second quarter ended September 30, riding on robust sales across segments.

The company had reported a net profit of Rs 113 crore in the July-September period of last fiscal.

Its revenue from operations rose to Rs 2,877 crore in the period under review against Rs 2,114 crore in the year-ago period, Uno Minda said in a regulatory filing.

”We have been taking measured efforts to increase our share of business with OEMs, consistently increase kit value and offer new and advanced technologies to our customers to capture growing opportunities in the automotive components market.

”Our efforts have been reaping benefits with consistent performance and leadership across all our products,” Uno Minda Group CMD Nirmal K Minda said in the filing.

The company’s board on Thursday also approved the setting up of a new 4W lighting plant with a total capital expenditure of Rs 400 crore to be spent over the next five years in a phased manner.

The initial outlay for the first phase of setting up the plant will be Rs 230 crore over the next two years, the company said.

The first phase is intended to be commissioned by the fourth quarter of FY24, it added.

The company said it is evaluating various locations to set up the plant and is expected to finalise within this quarter.

Uno Minda said its board has also approved a proposal to enter into a joint venture (JV) agreement with Germany’s Buehler Motor GmbH to develop, manufacture and market traction motors in India and other SAARC nations.

The JV will offer traction motors for battery-driven electrified two and three-wheelers, it noted.

Uno Minda will hold a 50.1 per cent stake in the JV while the remaining stake will be held by Buehler, it added.

The joint venture plans to incur capital expenditure of Rs 110 crore, including sustaining capex over a period of the next six years, Uno Minda said.

Commenting on the development, Minda said the partnership will help to combine engineering expertise and technologies to accelerate the localisation and manufacturing of traction motors for the Indian automotive market.

Buehler CEO Mark Furtwangler said: ”Our combined strength – Uno Minda’s expertise in value-focused engineering, manufacturing process and customer connects and Buehler Motor’s technical expertise, global experience in motors and access to future technology – is a potent recipe for success in growing electric vehicle markets in India”.

Shares of Uno Minda closed 1.71 per cent down at Rs 551.20 apiece on the BSE.

Source: PTI
Anand Gupta Editor - EQ Int'l Media Network