Minda Corporation (referred to as “Minda Corp”) is a leading automotive component manufacturer and flagship company of Spark Minda, Ashok Minda Group. The Company is pleased to announce that India Ratings and Research (Ind-Ra) has upgraded Minda Corporation Limited’s (MCL) Long Term Issuer Rating to ‘IND AA-’ from ‘IND A+’.
Rating upgrade highlights strengthening of the business portfolio and financials of Minda Corporation largely aided by a growth in its core business, both domestic and exports. The Company has also increased its focus on technological driven products like Sensors and Telematics. The upgrade also reflects improvement in MCL’s capital structure and net debt position post equity infusion of INR 3.1bn through a Qualified Institutional Placement (‘’QIP”) in May 2018. As a result, the company’s consolidated net debt to equity improved to 0.6x. QIP Issue proceeds usage will create inorganic growth opportunities, debt reduction and to provide resources to existing businesses.
Commenting on the development, Mr. R Laxman, Group President, Finance said:
“It is very heartening to share the news that Minda Corporation has been upgraded twice in last two years and has achieved a Stable Outlook with ‘IND AA-’.
In last few years the group has invested significantly in technology and preparing itself for the updated emission norm – BS VI to be followed by automobile sector from April 2020. The management has been continuously focusing on improvements in EBITDA and ROCE margins and making Minda Corporation Ltd. an attractive proposition to investors and stake holders”