Uno Minda Limited is a leading global manufacturer of automotive solutions and systems supplying to most of the OEMs in the country and abroad.
It has made significant contribution to the Indian automotive industry supply chain for more than six decades with innovative products. Uno Minda was incorporated in 1958 and is today one of the leading manufacturers of automotive switching systems, automotive lighting systems, automotive acoustics systems, automotive seating systems, and alloy wheels. Leading the automotive industry’s transition of electric mobility, the company has also built a formidable electric vehicle products portfolio.
Uno Minda manufactures and supplies over 20 categories of automotive components and systems to leading Indian and international OEMs based in India, Asia, South and North America, and Europe. It has over 73 manufacturing plants globally with overseas manufacturing facilities in Indonesia, Vietnam, Spain, and Mexico.
Technology and innovation have laid a strong foundation for the company with around 30 research and development and Engineering Centres in India, Germany, and Spain working on advanced technologies. The company’s joint venture partnerships with world-renowned technology partners from Germany, Korea and Japan combines its manufacturing prowess with their technical expertise.
The Indian automotive industry saw a robust performance across all segments in the first quarter of FY25 compared to the corresponding quarter of the last financial year. The industry experienced a 16% year on year increase in production volumes across all vehicle segments on the back of resurgence in two wheeler demand from the rural areas along with introduction of new vehicle models.
The passenger vehicle segment witnessed increased production volume of 6% during Q1 FY25 compared to the same period of last year reaching a total volume of 1.2 million units on the back of demand primarily from utility vehicles. The company posted a strong Q1 FY25 financial performance with robust revenue growth and improved profitability .
Dissecting the company’s various business performance segment wise for Q1FY25, the switching systems segment demonstrated exceptional performance generating revenue of Rs 958 crores contributing about 25% to the company’s consolidated revenue. This represents a 14% year on year growth due to robust export performance. On the other hand, the lighting segment with a substantial 24% market share of consolidated revenue has been a key growth driver posting impressive revenue of Rs 894 crores representing a 26% year on year growth. Both the four wheeler and the two wheeler lighting segment have exhibited robust growth and it is going to further accelerate when the new four wheeler lighting manufacturing plant at Khed gets commissioned later this year. The Castings business segment generated revenue of Rs 750 crores for Q1 FY25 contributing 20% to the consolidated revenue and posting a 21% year on year growth .
This was driven primary by the alloy wheel business and supported by further capacity expansion initiatives undertaken during the previous years . The company is extremely bullish in the alloy wheel business segment and his expanding capacity at its two facilities in Haryana. The seating business segment generated Rs 271 crores in revenue during the first quarter of current fiscal contributing to 7% of consolidated revenue. Though revenue has been flat in comparison to the earlier quarter, the company is expected increase in volume from new incumbent OEM customers.
The company posted revenue of Rs 700 crores from other product businesses such as controllers , sensors, blow moulding products, etc contributing to 20% of overall top line business . The electrical vehicle segment contributed 16% of revenue for Q1 FY25 as against Rs 136 crores of the corresponding quarter of last fiscal.
The company is expanding its EV product portfolio of EV inverters, EV motors, and 3 and 1 electric drive systems to cater to the growing Indian EV market. Moreover, it is also strengthening its joint ventures and partnerships to expand its content significantly. With the company adding the sunroof business in its portfolio, it is planning to capture 30% of the domestic market share over the next two years. Analysts and overseas fund managers are quite bullish on the automotive sector and particularly bullish on UNO Minda with it’s diversified business verticals. The UNO Minda stock quoting at Rs 1155 on the Indian stock exchanges can be purchased by portfolio investors for good capital appreciation.