Uno Minda shares surge over 5% after strong Q4FY24 profit growth, dividend of ₹1.35 declared

Shares of Uno Minda Ltd, a manufacturer of automotive components, gained over 5% in trade on Friday, May 24, after the company reported strong growth in net profit for the fourth quarter ended March 2024 (Q4FY24).

The auto ancillary stock gained as much as 5.4% to hit an intraday high of ₹875 apiece on the NSE. However, by 12:54 pm, the share price had trimmed gains to trade just 2% higher at ₹846.95 apiece.

In its earnings report for Q4FY24 and the full financial year released on Thursday, the company announced a revenue of ₹3,794 crore for the March quarter against ₹2,889 crore in Q4FY23, registering a rise of 31%.

The company’s operating profit, or earnings before interest, tax, depreciation and amortisation (EBITDA), for Q4FY24 stood at ₹474 crore, up 48% from ₹319 crore in the year-ago quarter.

The company’s profit after tax (excluding exceptional income) for the quarter was ₹269 crore as against ₹183 crore in Q4FY23, an increase of 47% year-on-year.

Uno Minda said that it continued to demonstrate significant outperformance in the current quarter compared to industry volumes. This growth extends across all product segments, encompassing both established lines such as lighting, switches, and alloy wheels, as well as emerging areas like EV technology, controllers and sensors.

The company’s board also approved and declared the final dividend of ₹1.35 per share, which is 67.5% of the face value.

Uno Minda also announced that the Board of Directors approved capital expenditure of ₹300 crore for expansion of the 2W Alloy wheel plant at Supa capacity by 2 million wheels per annum. The enhanced capacity is expected to be commissioned by Q1FY26. After the expansion, the capacity of 2W alloy wheels would be enhanced to 7.5-8 million wheels per annum.

Uno Minda Limited (formerly known as Minda Industries Limited) is a leading global manufacturer and supplier of proprietary automotive solutions and systems to original equipment manufacturers (OEMs).

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