Minda Corporation shares declined 3.89% to Rs 196.30 on the BSE despite reporting strong Q3 results.

The company reported a 41% increase in consolidated profit after tax (PAT) to Rs 69.9 crore for the December quarter, owing to an extraordinary gain of Rs 32.74 crore from the revaluation of its stake in Minda Stoneridge.

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According to a release, the company earned Rs 49.50 crore in the third quarter of the financial year that ended in March 2021. Consolidated operating revenue decreased slightly during the quarter to Rs 738.3 crore, compared to Rs 739.8 crore in Q3 FY21.

The company said in a statement that strong business fundamentals and a focus on improving the core business helped generate consistent revenues. It also stated that it has applied under the PLI scheme for the development of best-in-class and industry-leading goods.

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”In the third quarter of FY22, the auto industry continued to be plagued by challenges in the supply chain, threats from COVID-19 waves and overall subdued sentiments. There was a broad-based impact on all vehicle segments and the industry declined by around 10% on a quarter-on-quarter basis. On a year-on-year basis, the industry has declined by around 20% as Q3 FY21 recorded steep pent-up demand and filling of BS-VI inventory,” the company’s Chairman and CEO Ashok Minda said.

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Minda Corporation has delivered a continuous and stable performance despite these adverse conditions, he added, with consolidated sales of Rs 7,383 million.

Furthermore, the EBITDA margin increased sequentially to 10.7%, he said, adding, “Our PAT arrived at Rs 699 million, with an extraordinary gain of Rs 3 27.4 million owing to the revaluation of our stake in Minda Stoneridge.”

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In addition, the acquisition of Minda Stoneridge has been finalized, and the company is now a wholly-owned subsidiary of Minda Corp. He stated that the purchase will help to supplement core skills.

”We have further strengthened our leadership by welcoming Vinod Raheja as Group Chief Financial Officer. His steady leadership and vast experience will  help us in creating value for all stakeholders. He will be instrumental in strategic finance, strengthening controls and robust governance,” Minda added.