Minda Industries says green shoots visible in H2FY20 but difficult to sustain

Talking about capacity utilization, he said, “In FY18-19 we had 5 new plants commissioned in Gujarat; we moved along with Maruti and we have commissioned a new light plant in Chennai.”

“In the newer plants the capacity utilization is relatively low; it is almost 50-60 percent depending on business to business but in existing plants which are in Manesar or Pune or in the southern region, our capacity utilization ranges around 70-75 percent,” Bohra added.

On the revenue front, Bohra said, “Maruti is almost 20-22 percent of our revenue share and it is very difficult to say what should be the contribution because we supply a lot of components to Maruti ranging from alloy wheels, switch, lamp, horns and contribution ranges from 7-8 percent to 15-20 percent. So it’s difficult to give an average number but if I have to take a number then it should be in the range of average contribution of around 12-13 percent.”

He further said that we won’t have huge capex to scale to meet higher demand from Gujarat units. However, there are no delay in payments from any auto clients.