Minda Corporation Ltd
NSE:MINDACORP
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
336.2
632.3
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Minda Corporation Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Minda Corporation Limited Q3 FY '22 Earnings Conference Call hosted by KRChoksey Research. [Operator Instructions]I now hand the conference over to Ms. Parvati Rai. Thank you, and over to you, ma'am.
Thank you, Faizan. On behalf of KRChoksey Research, I welcome you all for the Q3 FY '22 earnings conference call of Minda Corporation Limited. From the management side, we have Mr. Ashok Minda, Chairman and Group CEO; Mr. Aakash Minda, Executive Director, Finance and Strategy; Mr. Neeraj Mahajan, Group President, Marketing; Mr. Vinod Raheja, Group CFO, Mr. Sanjay Gupta, Deputy CFO; and Mr. Bikash Dugar, Lead Treasury and Investor Relations. Now I hand over the call to Mr. Aakash Minda from the management for their remarks on the results, and then we will have a Q&A session. Thank you, and over to you.
Good evening, everybody. Thank you so much, Parvati, and thanks a lot, KRChoksey for holding this quarter conference call. I may request Mr. Ashok Minda to give us the opening remarks, please.
Thank you, Aakash. Good evening, everyone, and welcome to the quarter 3 financial year '22 earnings conference call of Minda Corporation. I would like to thank you all for joining us on this conference call here today, and hope you and your loved ones are staying safe and healthy.In the third quarter of financial year 2022, the auto industry continues to deal with challenges in the supply chain, threat from the COVID waves along with overall subdued sentiments. This had a broad impact on all the vehicle segments and vehicle categories. During the same period, Minda Corporation continued its momentum of outperforming both on a year-on-year basis as well as on a quarter-on-quarter basis. The company consolidated revenue stood at INR 7,383 million with an EBITDA margin of 10.7%. This is in line with our commitment of delivering consistent and improved performance. In light of the current performance, Board of Directors has announced an interim dividend of 15% on face value, which is INR 0.30 per share for shareholders. I would also like to apprise our stakeholders about some of the key developments during the quarter. First was the successful closure of the financial transaction of Minda Stoneridge, which made it a 100% subsidiary of Minda Corporation effective from 1st of January. I'm happy to share that the technological collaboration with our long-standing partner, Stoneridge Inc from the U.S. will be further strengthened in new technological product. Secondly, Minda Corporation has filed the application for production linked incentive scheme with the authorities and will be utilizing this opportunity to develop advanced technological products. I'm also pleased to announce that the company electric vehicles segment has added 2 new customers, BMW and Hero Electric. We also won lifetime order in quarter 3 worth INR 16,550 million from both IC and EV segment for all our products. We have further strengthened our leadership by welcoming Mr. Vinod Raheja as Group Chief Financial Officer. His steady leadership and vast experience will further help us in creating value for all stakeholders. He will be instrumental in strategic finance, strengthening controls and robust governance. Looking ahead, the industry outlook in near term will be determined by the ongoing Omicron wave, improvement in semiconductor supplies and overall customer sentiments. However, we expect to continue our consistent growth strategy by strengthening the core business and diversifying a new opportunity, which megatrend is bringing. With this, I would now like to hand over the call to Mr. Aakash Minda to discuss the financial and the operational performance of the company during the quarter. Over to you, Aakash.
Thank you very much, Mr. Minda, for your opening remarks. I would now like to refer to the presentation, which is sent to the stock exchange and post online. I would like to start with the Page #3, Minda Corporation, about -- a quick overview about the Minda Corporation. Minda Corporation is at INR 32,570 million revenue company, having more than 16,000 people and having more than the 33 plants various -- in various locations across India and ASEAN. We have 7 partnerships, Stoneridge, Silca, Furukawa, EVQPOINT, Ride Vision, INFAC and VAST. With Stoneridge, we have completed the financial transaction, but technological collaboration continues. Recent partnership with EVQPOINT has helped us to win big orders in battery charger space in this quarter. I now move to the next slide, which is the highlights of quarter 3 for financial year FY '22. The company has filed for application for the PLI scheme. We completed transaction of Minda Stoneridge Instruments Limited. It will be now a wholly owned subsidiary from 1st of January 2022. Revenue from the quarter continues to outperform the industry performance. Improved double-digit EBITDA margin for the quarter on a sequential basis despite lower automotive production. Total lifetime order book in quarter 3 FY '22 is INR 16,560 million. Four more patents filed in this quarter and YTD only in this year, 14 patents, total company now is having 180-plus patents. Strengthening our EV order book by adding 2 new customers and lifetime order win of INR 1,294 million in quarter 3 FY '22. In quarter 3 FY '22, MCL revenue remained resilient at flat growth as industry degrew by 20%. EBITDA margin came at 10.7%, which is 10 basis points higher quarter-on-quarter. Order booking in this quarter continues to be strong, which shows customer trust on our core business along with the new advanced non-legacy products. I now move to the next slide, sharing about the transaction completed for making Minda Stoneridge as 100% subsidiary of Minda Corporation. Minda, it will now be called Minda Instruments Limited. The company has more than INR 400 crores of revenue, 1,300 people, 10 million-plus clusters capacity and 21 million plus sensors capacity, more than 100 engineers and more than 16 patents filed. The Stoneridge earlier had 49% and now Minda Corporation has acquired the remaining 49% as well. The transaction has been completed, and line-by-line consolidation will happen from quarter 4. The steady financials with high ROC and will be value accretive from day 1 post acquisition. Minda Instruments Limited with a model of platform strategy being deployed to lower the cost and development time. Early engagement with customers for premium classes in growing the sensor business, localization of various sensors to aid profitability from FY '24, also trying to mitigate the semiconductor supply issues and its impact on the P&L. I now move to the next slide, which is Slide #6, an update on the electric vehicle opportunity. If I look at the right side, the potential EV kit value that Minda Corporation offers in this existing products is about 4,000 to 4,500. The increase in content from our business vertical mechatronics is about addition to about 2,000 to 3,000. And same in the information and connection system is about 2,500. The new products under development from our new EV division is about INR 8,000 to INR 10,000 totaling to about INR 16,000 to 20,000. For your information, in potential kit value, we have only included products for which we have confirmed orders. Products like motor controller and BMS are not included in the kit value. In this quarter, as Mr. Minda mentioned, we have added 2 new customers, Hero Electric and BMW for our EV products such as battery chargers and DC-DC converters. Our customer base in EV is expanding and whether new or incumbent OEMs, everybody is trusting and we are proud to share that. Now moving to the next slide on the quarter 3 financial year '22 highlights and industry performance. Again, on the left side, the green players and the green customers mark the purely electric vertical mobility customers. On the right side, by geography in the first 9 months FY '22, exports have grown by around 60%, and thus share of revenue from Europe and North America have grown to 10.4%. By end market, in the first 9 months, commercial volume have outgrown the other segments, and that is why the share of revenue has increased from 20% to 21.19%. Passenger vehicle shares have also grown because of export. Moving to the next slide, looking at the automotive industry performance in quarter 3 FY '22. If I see 9 months year-on-year, auto industry has grown by 9.3%, two-wheeler has only grown by 4.4% and others are on the left. If I look at the quarter 3 year-on-year performance, industry has degrown by about 20%, 2-wheelers by approximately minus 22%, and passenger vehicles has grown down by 12.5%. The third wave of COVID has resulted in muted January and whether the auto industry feels the pinch of that in coming months or not is something which we will have to closely monitor. For us, the focus remains on cost -- controlling the costs, improve productivity and continue to outperform the industry numbers. Moving to the next slide on the consolidated performance, for the quarter 3 FY '22 and 9 months FY '22, we would like to share the continued momentum of growth and outperforming both quarter-on-quarter and year-on-year. The company consoled revenue stood at INR 738 crores and EBITDA at 10.7%. This is in line with our commitment of delivering consistent and improved performance. For the quarter, INR 738 crores and EBITDA at INR 78.7 crores and margin at 10.7%. PAT is also at INR 69.9 crores. Operational outperformance. Operation has outperformed the industry production numbers. Aftermarket has helped us in resilient business performance despite challenging macroeconomic scenario and semiconductor shortages. The EBITDA at 10.7% is delivered due to double-digit margin despite higher commodity prices and adverse impact of semiconductor shortages across the industry. It is well supported by good growth in the aftermarket business and company continues to implement several cost control measures for fixed cost. In this regard, the Board of Directors has declared an interim dividend of 15% on face value, that is INR 0.30 per share. Aftermarket revenue in the quarter was INR 135 crores, which has grown 16% year-on-year and 6% quarter-on-quarter. Export revenue was INR 86 crores, which has grown by 25% year-on-year and 14% quarter-on-quarter. Our share of profit from JV companies from MSIL, from Minda Stoneridge Instruments Limited was INR 3.7 crores, VAST was almost flat and Furukawa was negative INR 1 crore. Going to the next slide on our division-wise performance. If I look at the first division, which is Mechatronics aftermarket and others, on a year-on-year basis, we did a INR 437 crores in quarter 3 FY '21, whereas we have done INR 445 crores in this quarter. The EBITDA is 13% for this quarter. The Mechatronics and Aftermarket division, the revenue is stable as it is supported strongly by the fundamentals of resilient aftermarket and exports. Our EBITDA in this vertical has been at 13.0% due to favorable impact of higher aftermarket and various cost-cutting measures across the divisions. It is also adversely impacted by higher raw material prices and indirect impact on semiconductors.Mechatronics was impacted by 2 -- by lower 2-wheeler sales of 22% year-on-year, but aftermarket grew by 16%, which resulted in 2% overall sales for the vertical. Commodity price rise mainly on aluminum, zinc and silicon has impacted the vertical EBITDA margin, but cost-controlled measures have helped us survive 30%. In the second division, which is Information & Connected Systems, our revenue from 302% has come down to 293%, but EBITDA has gone up by 10 basis points from 7.1% to 7.2%. This segment was also impacted due to lower 2-wheeler sales, but stable commercial vehicles production supported it. EBITDA at 7.2% is due to the favorable product mix, slight improvement in labor productivity and tight control on fixed costs and stable copper prices also supported the EBITDA margin. Would like to also highlight our localization drive still continues and is in line with our plan. Moving to the next slide on the business performance in the order won. In the quarter 3 FY '22, we have won orders worth INR 16,516 million, out of which export orders were INR 104 crores and from EV players INR 116 crores in the lifetime order won. The new businesses is INR 616 crores and replacement business is INR 1,035 crores, which shows the strong customer confidence. If I look about the year-to-date, Minda Corporation has so far booked INR 4,231 crores order book in lifetime and about INR 258 crores from exports and INR 842 crores from the EV players. INR 2,362 crores is from the new businesses and INR 1,869 crores is from the replacement businesses. The Mechatronics has won INR 850 crores, out of which 60% is replacement and 40% is new. And for the entire EV, it's INR 2,164 crores. In the Information & Connected Systems, for the quarter 3, the order won was INR 624 crores, 74% is replacement and 26% is new, which is majorly all wiring harness. In the Plastics & Interiors, we have won INR 66 crores worth of lifetime order book, 100% replacement business. And other businesses is also about INR 111 crores, which is also 2-wheeler business. New order businesses of INR 23,626 million also shows about the -- which is outperforming the industry growth. I would also like to highlight some key order wins from various customers in this quarter, some export market has awarded us for smart key businesses for large 2-wheeler player. We also won wiring harness business from a local large 4-wheeler manufacturer in Vietnam. We also won die-casting housing businesses for export and domestic, battery charger businesses from leading 2-wheeler Indian OEM and DC-DC converters from export orders, also, TREM IV, TREM V businesses and wiring harness businesses for the tractor industry. Moving to the last part of the presentation on the awards and recognition. While we continue to receive various awards, and thanks to our team and family members, one award I would like to really highlight is the Minda Corporation has received the IS -- ICSI's prestigious sixth annual award, CSR Award in 2021 as in the Emerging Category. Thank you very much for placing our confidence in us. Looking forward for the questions.
[Operator Instructions] First question is from the line of Jay Kale from Elara Capital.
Congratulations on a decent set of numbers in a challenging environment. My first question, sir, was on the order -- sorry, potential EV kit value. You've mentioned -- you've given a breakdown on the increase in content from mechatronics information connected a new product. I just wanted to clarify that this is a smart key solution type of a product, which is not necessary into -- it's not an EV specific component, but is adopted by more of EVs. Which segment would that come in? Because we believe that, that had a higher kit value than maybe the INR 2,000 to INR 2,500 content shown in the ICS division or even the Mechatronics division.
Yes. So this is primarily the smart keys and keyless entries coming in the Mechatronics division. And again, I'm happy to share that over the last few quarters, we have won 28 platforms from more than 10 customers in keyless entry solutions, including EV and IC engine customers.
Okay. Understood. Understood. So 2,000 to 3,000 would largely entirely be the smart key solution in the Mechatronics, right? Because I believe that, that was the kind of ASP that we were looking at for that.
That's right. Yes.
Understood. And if you could just throw some light on the new product under development 8,000 to 10,000. You mentioned that BMS and motor controller is not in that. Where are we in terms of the -- it's under development, but where are we in terms of the order wins? Or how are we in terms of the ramp-up of those products?
So Jay, these -- about 8,000 to 10,000 includes products like DC-DC converter, battery chargers, and of course, various ranges that go in this. Again, I'm happy to share that over the last 9 months for these 2 products, if I may say, we have won orders from large OEMs, startup and large startups also in India primarily and to the likes of TVS, BMW, Revolt, Ola, Hero Electric and others. So I would not be able to give what product against which as I'm bound by confidentiality, but these are the businesses that we have won.
Understood. And just on your Stoneridge acquisition. You've also mentioned on the outlook side that you have access to highly growing global market of clusters and sensors. If you can just elaborate a little more on how the opportunity size increases? How are you placed between now getting more orders from the passenger vehicle or 2-wheeler side versus what a higher contribution of the CV side is? And how are you placed in terms of opportunity of future partnerships, if at all?
Yes. So good question. Jay, thank you again for that. So clusters, just to share with you, Minda Corporation started 6 decades ago from clusters. So we are building on that legacy and want to take that forward. And now with the change in the customer requirements as well as with the mega trends, the customers is -- sorry, the clusters is 1 and sensors is 1 or such products, which are going to go through the premiumization and electronification route.If you currently see from the analog clusters, they are now moving to digital and then TFT and then, of course, adding software and haptics and other styling aspects. So this is, of course, a INR 400 crore company, primarily catering to the 2-wheeler and commercial vehicle segment. Going forward, we have already won orders, and you can already see in the market some of our products, which are into the TFT clusters. For example, the new [indiscernible] the clusters that you see are from Minda Corporation. Similarly, we have production capacity to make these clusters. For the Mahindra Thar also the clusters are coming from Minda Corporation as a first passenger car product. We're now in discussions with various other customers in all segments, tractors, 2-wheelers, commercial vehicles, passenger cars, to win opportunities in the advanced TFT clusters and moving from the clusters to cockpit solutions and driver information solutions at large with these various OEMs.
The TFT cluster, which is again the premiumization like you mentioned in the smart key, we have moved from -- long time from mechanical to digital to TFT. And now we have also getting -- we are also in discussion with customers to move from 5-inch TFT to 7-inch to 10-inch TFT. And that is going to be the more value addition in the company. And secondly, the sensor -- various category of the sensors are already under development. And we are also doing the localization, which will give us a benefit to capture more market.
Understood. Understood. Just last 1 question, if I may squeeze in, on your financials. You've seen a decent performance on the margin side despite the headwinds of raw materials, while EBITDA margins increased quarter-on-quarter, but gross margins understandably have also come under pressure. How are we placed in terms of the price increases in terms of commodities? Are -- have we seen the last leg of commodity price increase? And how is the lead lag in terms of your cost increase versus the pass on to the OEM customers?
So Jay, thank you very much. So again, like we've explained before that we have a lag with our customers from 3 to 6 months basis. And we are all covered when it comes to our customers, but just to give you some more details, and I'll ask Mr. Neeraj Mahajan to share with us, please.
I think I would say, at this point of time, the market is very challenging from the customer side also because they are not able to get the numbers what they would like to achieve. However, we are gradually moving from commodities, which were in non-index section to the index 1 so that recovery when we look at going forward would be given. So that is strengthening our recovery cycles today. And trust me today, organization is extremely focused to request customer in best possible ways for recovering lease amount. This is first point.Second, in terms of our discussions with the vendors also, we are looking at how we can consolidate the requirements in such a way that they do not come back to us seeking all the commodity increases to us and we, in turn, can also be -- remain competitive because end of the day, if we are not asking the -- we are asking the price increase and competitor is not asking it, you can understand I cannot improve the profitability for my program. So we are working on both the sides, and that is helping us to improve our bottom line.
[Operator Instructions]The next question is from the line of Ronak Sarda from Systematix.
Quickly on the EV order book. One, the INR 850-odd crores top line, if you can help us understand how the overall numbers will start flowing to the P&L, let's say, where do we see '23, '24? How much of this order book will start converting into production based on your estimates? One is that. And second, in the products like you highlighted, DC-DC converters, battery chargers, where do we -- I mean, what would be your market share aspirations in some of these products?
Yes. Thanks, Ronak. So on the EV market front, I mean, for this year, if I look at the overall Minda Corporation, we'll be having a top line of about INR 20 crores to INR 25 crores coming from EV platforms. Going to the next year, of course, the market fluctuation will definitely come into play. But with a healthy order book of about INR 850-odd crores, we may see somewhere about INR 100 crores to INR 150 crores or more in the next financial year coming from the EV space. Of course, this is all subject to the market fluctuation and the uptick from the customers. And I would just like to get into that. I've been highlighting that point for the last many calls also that it all really depends on the customer uptick. But we have a strong order book with all the customers and all the segments. Coming to the DC-DC converters and battery chargers market share, we are working on this market share front, and we'll get back to you with the exact number of details. But each customer and a player has a different strategy when it comes to the import versus localization. So all I can assure you is that we are working with all and every customer in order to have a penetration with our EV components, now how we can get the localization benefits by offering Minda Corporation products.
Right. Right. Second question on the utilization level, specifically if I see the wiring harness division. So if you can help us understand or break it up into how the utilization level is, say, at the 2-wheeler units and CV units. And is there a plan to correct some of these capacities given we have seen a very substantial cut in the overall 2-wheeler numbers. Also, how much of this could be offset by new order wins, let's say, for EV wiring harness or how are we placed at the EV wiring harness industry?
Yes. So Ronak, if I look about the overall Minda Corporation, you may say that we are using our capacities up to, let's say, 65% to 70% at the moment. If I speak about the wiring harness division, it is somewhere again about 60% to 65%, and our Security division is somewhere about 55% to 60%. While we increase our share of business from wiring harnesses in TVS, Ashok Leyland and Hero, in the south plants that we basically have, this will help us come to an optimum utilization level. And also when the EV wiring harness customers are going to kick in from the southern plants, it will help us utilize our facilities better.
Okay. Sure. And any indication on how large would be the EV wiring piece as of now? And how is the industry structured right now? Is wiring harness still a lot of it being imported? Or any idea on how the overall wiring harness share -- wiring harness piece is moving?
Yes. So I mean, of course, wiring harness currently has a majority from the Chinese market. Of course, now the players like Minda Corporation and our focus is to localize them. So of course, we are now working with every 2-wheeler OEM, EV OEM in order to win their business. And we have already won businesses. Again, I may not name for all of them, but customers from the North as well as South in the EV OEMs, where we won 100% of businesses for wiring harnesses.
Sure. Sure. And the last question, again, I mean, you answered it partly in the previous questions, but if I look at the overall raw material to sales movement in the last 6 to 7 quarters, we are anywhere between 60% to 63% as such. So I mean, should we assume, I mean, the majority of the RM pressure is behind us and now we should start seeing some benefits of the price increase when they come through and we have efforts to help improve the margin profile?
So Ronak, I think Mr. Mahajan had answered this question both from the front end customer side as well as our supplier side as well. So we are taking various initiatives. Of course, the zinc, aluminum, silicon prices have increased quarter-on-quarter. Of course, copper has been stable from the last quarter to this quarter. But silicon, for example, has been jumping very high. And some of them are indexed commodities and some of them are not. So we are again requesting our customers in order to get the best recovery from them against all of them.
[Operator Instructions] The next question is from the line of Abhishek Jain from Dolat Capital.
Congrats on a decent set of numbers in a challenging environment. Sir, during this quarter, the company has incurred around INR 327 million due to the devaluation of stake in the Minda Stoneridge. So acquisition cost would be now around INR 192 crores because of adding this number?
So that's INR 161 crores, Abhishek, it's not INR 192 crores.
So you have also done the revaluation during this quarter of INR 32 crores?
No. So that is -- I ask our CFO to give the details, please, to help you understand better.
Abhishek, the revaluation, which has come INR 32.7 crores, is not a cost to us. Our stake, which was 51% stake, because that -- the investment value of that has gone up by INR 32.7 crores. So our investment value has gone up and that we have to book in our P&L. That's why, as an exceptional item, that has come into our P&L, and that will be reflected as a goodwill in the balance sheet. So that's not the cost.
Why it has deducted from the PL?
It has?
Why it has deducted from the PL in this quarter, sir?
Not deducted. It is added. Added.
Okay. Sir, other interest cost and other income numbers used to be same. But this time, there's a big gap. So there's a shortfall in other income. Is it because of the reduction in the cash and bank balance? So can you please update the net debt figure?
Yes. So again, I'll ask my -- I'll ask the CFO to give further details. But again, the interest rate has fallen and utilization of cash for vendor payment and repayment charges for early redemption for fixed deposit for banks to own its stake. But yes, I'll ask the details to be given by Bikash please.
The other income has fallen as the cash which is lying with us had fallen because we have utilized that cash to buy out the stake in Minda Stoneridge and the FDs, which were there, we have premature that FD. So there were certain prepayment charges, which has resulted the other income to fall. In terms of why the finance cost has gone quarter-on-quarter high, we used to get the EPC subvention of 3% because of -- but from October onwards, the government has not notified that subvention. That's why, as a conservative, we have booked that as a finance cost, and that's why the finance cost has increased by INR 1 crores in this quarter.
What is your current net debt figure, sir, in your books?
In our books, the net debt figure is around INR 58 crores.
Okay. Is it used to be at a higher side earlier? So it has gone down significantly. It is because of the acquisition of this business only and plus that requirement of the working capital?
2 things. At the end of the financial year of FY '21, the net debt figure was minus INR 17 crores, means we were having more cash than the debt, but now it has gone up by INR 58 crores because we have utilized INR 160 crores of cash, but the Stoneridge had INR 86 crores of cash with them, because of that. And we have also generated free cash flow around INR 17 crores in 9 month. All this, if you add up, that's why the net debt figure has increased from minus INR 17 crores to INR 58 crores.
Okay. Sir, our current [indiscernible] two-wheeler is around 4,000 to 6,000 and expected to see 15,000 to 16,000 for the EVs. So just wanted to know how much current content per vehicle in EVs? And what all other products are you going to add to the -- at a 16,000 kind of the level?
So Abhishek, in the -- again, the chart shown, our current businesses are at the rate of about 4,000 to 6,000. And while we are working on the individual product portfolio. So when it comes to mechatronics, the smart keys and other product likes such as light weighting and all is going to increase to about 4,000 -- sorry, 2,000 to 3,000. And then in our other wiring harnesses and clusters and other spaces, it is going to increase -- increase by INR 2,000 to INR 2,500. This is also applicable for IC engines as well, when it comes to the premiumization and other electronification on the bikes. The remaining 8,000 to 10,000 of the newer product lines that come from our green mobility division, which is on the DC-DC converters, battery chargers or including here some of the products that go into the commercial vehicle and buses space, such as the [indiscernible]
And sir, my last question is related with the financial details of the Minda Stoneridge for the 9 months FY '22, like revenue, EBITDA and PAT? And how is the product mix?
Yes. So for the 9 months, when I speak about the MSIL or Minda Instruments Limited now, so we have done about INR 346 crores. EBITDA stands at INR 34 crores at 9.8%, and PAT is at about INR 18.7 crores. And again, here, the focus is that -- I mean, the EBITDA is also lower due to various challenges of raw material costs, semiconductor premium costs and [Audio Gap] other technology products from different customers and different segments. Modular platform synergy -- strategy being deployed to lower the cost and development times, so affordability and time to market and early engagement with the customers for premium clusters and growth in Sensors business, localization of products to improve the profitability as well and try to mitigate the semiconductor supply and its impact on the P&L.
And how is the product mix in terms of the 2-wheeler, 4-wheeler and CVs in the Minda Stoneridge?
So when it comes to Minda Stoneridge, about 60% is 2-wheelers and remaining is the commercial vehicle and tractors right now. And both will be very small numbers. We're turning orders. I mean the first 1 by Mahindra Thar, and now we're looking at advanced stages of discussion with customers for advanced TFT clusters for their products, passenger cars.
How much is the localization in the Minda Stoneridge, sir?
Except for the semiconductors, everything else is localized. And of course, TFTs going forward will be imported from China. But rest, it is all -- it is locally produced. Some sensors are also being imported due to the current requirement and they will be -- we are working towards the localization of them.
So sir, there is a big opportunity in the e-2-wheeler digital clusters. And as most of the e-2-wheelers are using the digital clusters now and the realization is also INR 8,000 to INR 10,000. In that case, how much big opportunity you are looking in this business? And what is your revenue target for the Minda Stoneridge for the next 2 years?
Abhishek, great question, but it includes some confidential information also. So I might not be able to share a lot of information. But as I can share with you that we are improving and working strong on our competencies, softwares, localization, platform approach in order to win these customers. And again, we are in various discussions at various stages to win customers, already samples have been prepared.
The next question is from line of Chirag Shah from Edelweiss.
Apologies for repeating if the question already has been asked. One, Stoneridge revenue contribution in the quarter, if you can indicate? That was the first question, because I think it's part of consolidated numbers now, right?
No, that will be -- they will come into consolidation from quarter 4.
From quarter -- okay. From -- so you indicated from January, okay. I [indiscernible] Sorry for that. The second question is, in your order book breakup that -- the order book that you indicate for the EV, is it possible to break it down broadly between the new product and the old products like what is the order book based between your traditional products like the locks and keys and wiring harness and some of the new products like sensors and other things that we have been working on, on a broader basis.
So you may say that about 60% to 65% comes from the legacy businesses and about 45% comes from the EV product lines, which is nonlegacy at the moment.
Okay. The second question was on sensors. So traditionally, if I understand correctly, we were working more on some sensors as a primary area of focus. Is there any change over there? Have we expanded our product in the sensor category as such? If you can still shed light and the opportunity size now versus what was the original.
So I think that's a lot of details to share on the call. I mean if you can speak to Bikash, Bikash will be happy to share with you the details. But just to share with you, there are various types of sensors where it's BS-VI and TREM IV, TREM V coming in and more importantly, the EV aspect. We are focusing on TPMS, thermal management sensors, other EV-related sensors. Again, it is internal strategy and I won't be able to disclose. So on a one-on-one basis, if you really need details, I can get back to you.
And if I can just squeeze in 1 more question. Your utilization levels are still at optimum. So how should we look at margin trajectory from here? And also an update on your localization, you have an aspiration to localize the wiring harness piece, where are we in that journey?
Yes. So on the capacity utilization levels, of course, there is a possibility to win businesses and increase our revenue as well as profitability. But we are cautious on 2 aspects; a, our FATR has to be really important. And secondly, while we reach to about 75% to 80% capacity utilizations, we look for maybe new plants for derisking purpose and also expansion. So there are mixed strategies that we -- that come into effect.Coming to the profitability of the wiring harness through localization, the localization will help us improve the profitability by, let's say, 50 to 80 basis points in the next financial year. The labor productivity improvement should be about again 50 basis points. New businesses and increase in share of business, which should also help us -- and the business mix from more commercial vehicles will also give us enhanced value. On the localization, I'm happy to share that the plan that we have prepared is already in execution phase, and we are well in line with our -- in our plan. And I think the results can be seen in our quarter-to-quarter numbers in wiring harness division.
Okay. So we -- and they have now started looking at localization options in the wiring harness piece because earlier they were reluctant and then COVID came across, so everything got postponed. So has those discussions have started happening now at an advanced pace? Is that a right assumption? .
That's right, yes. The testing validation takes time. So while the discussions are going with some customers and some customers have already approved it, but there are testing validation which have a long lead time, about 12 months or so, and that is when they come into production.
So effectively, H2 onwards, you can see some improvement. Is it the right assumption? Or it's more about, I guess, '24 onwards that we will see the impact?
It will be gradual, quarter-on-quarter.
The next question is from the line of Jay Kale from Elara Capital.
Sir, 2 questions. First on the lockset side, would you have gained any market share because you all seem to have outperformed the industry. Of course, that is also a function of mix and CV contribution. But specifically on the locksets and die casting division, would you have gained market share, if you can disclose and approximately how much? And how do you see that going forward in FY '23 and '24?And my second question is on the PLI, you mentioned that you all have bid for that. I mean, you all plan to bid for that. But if you can throw some light on which are of components that you'd want to go aggressively on the PLI side because there are a lot of components on the advanced automotive component side, which you all are currently producing as well. Which are the key focus areas amongst those components, which you all think that you'll have a right to win and bid aggressively?
Yes. Thanks, Jay. When it comes to the market share, see, when it comes to the keyless solutions, I think nobody is there in the market. When it comes to the locking systems, which is mechanical lock, it is becoming more and more of commodity and -- which is in the overall locking space, we have grown from about 35% to north of 40% over the last few quarters, and you'll see further gains with our actions in the future as well. When we speak about the PLI scheme, we have already applied on the 9th of January. And of course, all -- most of our products are complying in the PLI scheme. We have there about 16 products across 14 technologies like again smart keys, e-mobilizers, convert -- DC -- EV products, ADAS solutions and other products as well. So there are some products that we've also requested and done some request to the authorities to include as well.
Understood. Is it fair to assume that you would now be the largest mechanical locksets in India with 40%-plus market share?
I'll request Mr. Minda to give that answer to give confidence to all of you that our endeavor is to be the market leader, we are so, but I'll request Mr. Minda to add some light on that, please.
See, the most important is where we make more margin. So now as Aakash mentioned, although we have that market share, but we have to see the technological shift and so that we increase our margin. So mechanical lock, yes, we are -- we have all the competency, we are there, but then it has become more commodity, so we are not giving that focus, and we are seeing how to convert all the OEMs to the smart key and this new technology. We are doing continuous efforts how to make it more affordable to the customer. And simultaneously we should get more margin in comparison of the mechanical keyset.
The next question is from the line of Abhishek Jain from Dolat Capital.
Sir, during this quarter, there is a 4% quarter-on-quarter drop in the 2-wheeler revenue, while the industry degrew around 20%. So what was the reason, sir, of performance?
So Abhishek, this was -- you're asking the reason for the industry degrowth or are you asking the reason for our numbers?
Reason for your outperformance, sir.
Right. So there are various initiatives that we have taken over the last few quarters and few years. Of course, while I've mentioned earlier on strengthening our core and customer engagement and technology have been the pillars in order to drive our performance. So enhancing the core in the operational aspects, whether it is the partnerships, improving working capital, strengthening the management, improving the wiring harness market share as well as profitability, on the technology and digitization across various -- launching new products and engaging better in the case and megatrends. And lastly and most importantly, the customer centricity while winning new products and new customers in all our product lines increased kit value. Share of business increase has been a key focus for us to outperform as well as the premiumization of our products. And to add, aftermarket has really given us the growth along with the exports.
What was the product mix from the wiring harness business for the last 9 months FY '22 as well as CVs and PVs?
So I would suggest -- I would rather say that about 55% to 60% or more so has been on the 2-wheeler space. Recent in the last quarter, commercial vehicle has started picking up. So that I would say about 20% to 25%. And again, tractors is also about 15%. PVs and others come to about, all put together, 20%.
So have you won any new business in wiring harness, especially in the PV side?
PV side?
Yes.
Yes. So as I mentioned, we have won business in Vietnam from our local -- 1 of the largest local 4-wheeler manufacturers in Vietnam. And also in India, we are in development stages with a couple of customers in advanced discussion stages with them as well.
And what is the quantum of that business, sir?
I'll have to just check. Bikash, if you could just get back to them?
I'll get back to you, Abhishek, on that.
Okay. Next question is related with this -- your ASEAN business. So how is the growth in the ASEAN business, especially from the Indonesia and the Vietnam, in the 2-wheeler?
So ASEAN business is -- I mean, it's a different strategy and a different animal. When I come to the overall 2-wheeler market, it really depends on the country. But the opportunities from exports from Indonesia and Vietnam are looking to grow, where all the companies are trying to adopt China Plus One strategy. But definitely, our focus is to do more and more order win when it comes to our existing customers as well as new customers and see how we can export from there. So this is what our interest and focus is in order to first win the local businesses and then grow forward and adding more and more products from India to our locations in ASEAN.
And, sir, in aluminum die casting business, how was the performance for the 9-month FY '22 versus 9-month FY '21? And what was the contribution of domestic versus exports?
So when we speak about our die casting -- 1 second, please. Yes, so when we speak on our die casting revenue, quarter 3 last year was about INR 128 crores, and quarter 3 this year also has been about INR 128 crores also. And if I speak about the profitability, the profitability has come down again due to our customer indexation and silicon prices for the export customers, and it is a lag that we are looking at, and plus these semiconductor issues that is looking at. But of course, this is going to come back very soon once the global passenger car market picks up AND our customer starts inverting the material.When we come to about the 9-month die casting, so we -- in the last year, we did about INR 275 crores. In this year 9-month, we have done about INR 375 crores. And if I speak about the profitability, the EBITDA numbers have gone from INR 45 crores to INR 54 crores in the last 9-month.
So as the capacity utilization has reached to the 75% to 80% in the die casting business. So are you looking for further CapEx in this business?
So the current level of capacity utilization is not 70% to 80%. It is somewhere about, again, 65% to 70%. But definitely, each customer has their own requirements and hence, we have to commit to them in terms of the CapEx. So while we win new businesses, we have to look at this investment strategically.
Okay, sir. And my last question is your overall CapEx for the FY '22, and what is your plan for the FY '23?
So I'll ask Sanjay Gupta to just share these numbers on the CapEx front. However, the overall FY '22 -- sorry, and the overall YTD is about INR 72 crores in terms of the CapEx. And overall, you may say in the full year, we're looking at about INR 100-odd crores in this year. And the same number is expected to be from the -- similar numbers expected to be in the next year.
This is including the PLI investment or it is excluding PLI?
So this is excluding PLI.
And what can we expect for the PLI investment for FY '23?
So in FY '23, we are looking at about, again, INR 70-odd crores -- sorry, one second. So about 4% to 5% of the revenue when it comes to the PLI on the investment perspective.
So most probably that your capacity will cross the INR 200 crores for the next financial year?
No, not the next financial year. Over the next 2 years.
The next question is from the line of Shashank Kanodia from ICICI Securities.
Sir, I just wanted to have a better sense over the next 2, 3 years, what kind of top line and profitability are you seeing? So as you alluded to initial participants that you're putting a 65% attrition levels. So something like INR 5,000 crores of top line possible for us in FY '24? Is it a fair assumption given that we have done good amount of new orders?
Yes. So again, our first endeavor Shashank is to outperform the industry performance. So if the industry goes flat, our endeavor is to grow at least 10% to 15% higher than the industry. There are various initiatives that we are looking at. One is, of course, in terms of the order book, customer engagement, building our strong product portfolio, looking at the 4-wheeler as well as exports and aftermarket. Some of the areas which will help us give us the growth and outperform the industry. When we look at the overall EBITDA numbers, of course, our most and most important is consistency and sustainable delivery of the profitability and then gradually go and increase our profitability quarter-on-quarter. In about midterm to let's say, about 2 to 3 years, we would like to go to about 12% to 13% is what we are looking at.
Would the revenue...
Sorry?
So maybe speak -- any details given on the revenue front? Maybe in 3 years, 5 years, you want to become a INR 5,000 crore company or INR 10,000 crore company, anything on that sort?
So our endeavor is to outperform. We are in the midst of working on our long-term plans, and we'll come back shortly on that.
And sir, secondly, there have been production issues of another market [indiscernible] Ola Electric. So just wanted to get a sense, what is the production run rate that you're receiving from them at this point of time and ramp up schedule, if anything you can share?
Sorry, Shashank, I will not be able to answer that question due to confidentiality reasons with our customers.
Sure. But sir, we do remain the full e-solution suppliers to them, right?
Yes, yes. Absolutely, absolutely. 100% share of business.
And sir, what's the role in Hero Electric?
Sorry?
And what's the role in Hero Electric, so what components are you supplying to them?
Hero Electric, we have -- we're now looking at battery chargers and there are other engagements that are ongoing for all our other product lines.
Ladies and gentlemen, that was the last question for today. On behalf of KRChoksey Research, and Minda Corporation Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.