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What is the story about?
Uno Minda expects exports and electric vehicle (EV) components to be key growth drivers over the next few years as the company expands its manufacturing footprint and targets growth above the broader automotive industry, according to Sunil Bohra, Group CFO of the Gurugram-based auto component manufacturer.
Bohra said export opportunities are improving due to new trade agreements and easing geopolitical concerns. The company is also adding capacity for EV products and expects to continue growing faster than the industry.
"Our expectation or target has been at least growing 1.5 times the industry growth," Bohra said. "If industry grows 10%, we endeavour to grow at least 15% to 18%."
The company is maintaining its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin guidance of 11% plus or minus 50 basis points for the current financial year, despite easing commodity prices that could support profitability.
Exports currently account for around 10% of Uno Minda's revenue. The company has expanded its international manufacturing presence with facilities in Indonesia and Vietnam and is setting up new capacities that will also cater to overseas markets.
Bohra said Uno Minda secured nearly ₹400 crore of incremental export business from Europe and the Americas in the latest quarter on an annualised peak revenue basis.
The company recently announced a greenfield alloy wheel plant in Chhatrapati Sambhajinagar, with part of the output expected to serve export markets.
Bohra said the recent cooling in crude oil and related raw material prices is positive for the industry, although the impact on financial performance may take a few weeks to become visible because of inventory cycles.
He noted that commodity price fluctuations are largely passed through to customers, although there can be a short-term lag.
"Overall, in the medium to short term, this is a good relief for the entire industry," he said.
Uno Minda also remains focused on the growing EV market. Bohra said electric two-wheeler penetration has increased to around 8%, while the company's revenue exposure to the segment is significantly higher.
Around 12% to 15% of Uno Minda's revenue now comes from EVs in the two-wheeler business. The company is investing in EV-specific products and manufacturing facilities, including electric drive units for passenger vehicles.
The higher content per vehicle in EVs is expected to support revenue growth. In two-wheelers, the company's content value increases from around ₹11,000 per vehicle for conventional products to ₹25,000-26,000 when EV-specific components are included. In passenger vehicles, the total kit value can rise to ₹3.5 lakh-4 lakh with the addition of EV products.
To manage future demand, the company is adopting a modular capacity expansion strategy that allows it to scale production gradually while adapting to technological changes.
For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
Bohra said export opportunities are improving due to new trade agreements and easing geopolitical concerns. The company is also adding capacity for EV products and expects to continue growing faster than the industry.
"Our expectation or target has been at least growing 1.5 times the industry growth," Bohra said. "If industry grows 10%, we endeavour to grow at least 15% to 18%."
The company is maintaining its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin guidance of 11% plus or minus 50 basis points for the current financial year, despite easing commodity prices that could support profitability.
Exports currently account for around 10% of Uno Minda's revenue. The company has expanded its international manufacturing presence with facilities in Indonesia and Vietnam and is setting up new capacities that will also cater to overseas markets.
Bohra said Uno Minda secured nearly ₹400 crore of incremental export business from Europe and the Americas in the latest quarter on an annualised peak revenue basis.
The company recently announced a greenfield alloy wheel plant in Chhatrapati Sambhajinagar, with part of the output expected to serve export markets.
Bohra said the recent cooling in crude oil and related raw material prices is positive for the industry, although the impact on financial performance may take a few weeks to become visible because of inventory cycles.
He noted that commodity price fluctuations are largely passed through to customers, although there can be a short-term lag.
"Overall, in the medium to short term, this is a good relief for the entire industry," he said.
Uno Minda currently has a market capitalisation of ₹63,789.85 crore. The stock has gained more than 4% over the past year.
Uno Minda also remains focused on the growing EV market. Bohra said electric two-wheeler penetration has increased to around 8%, while the company's revenue exposure to the segment is significantly higher.
Around 12% to 15% of Uno Minda's revenue now comes from EVs in the two-wheeler business. The company is investing in EV-specific products and manufacturing facilities, including electric drive units for passenger vehicles.
The higher content per vehicle in EVs is expected to support revenue growth. In two-wheelers, the company's content value increases from around ₹11,000 per vehicle for conventional products to ₹25,000-26,000 when EV-specific components are included. In passenger vehicles, the total kit value can rise to ₹3.5 lakh-4 lakh with the addition of EV products.
To manage future demand, the company is adopting a modular capacity expansion strategy that allows it to scale production gradually while adapting to technological changes.
For the full interview, watch the accompanying videoCatch all the latest updates from the stock market here
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