Minda Industries aiming for 11-12% plus margin growth if volume picks up

Mind Industries has a small portion of the international market. It gets about 14 percent from its overall business but the company had indicated that there is weakness in the acoustics business in Europe. In an interview to CNBC-TV18, Sunil Bohra, Group CFO of the company spoke at length about the Russia-Ukraine crisis and whether there is more pressure.

He said that the industry has seen severe headwinds over the past few quarters. However, demand has improved over the last few months. “Over the past few quarters there have been severe headwinds in terms of semiconductor shortage, demand etc., there are various factors which impacted our Spanish and German operations, but in last couple of months we are seeing some pickup, demand has been improving and we do expect semiconductor issue to settle down in two-three quarters,” Bohra said.

Talking about margins, he said that the company is comfortable between the range of 11 percent and 12 percent margin but will be able to do better if there is a volume pick up. “Overall we are optimistic and we do not intend to revise the range. In fact, we might be at the top end of the range if volumes further improve,” said Bohra.