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News: Uno Minda (erstwhile Minda Industries, MIL) reported muted performance for Q4FY23. Consolidated revenues for the quarter came in at Rs 2,889 crore (flat QoQ). Consolidated EBITDA for Q4FY23 stood at Rs 319.3 crore, with attendant margins at 11.1%, down 55 bps QoQ. Reported consolidated PAT for the quarter stood at Rs 182.7 crore, up 12.8% QoQ (aided by higher other income and lower effective tax rate).
Views: Margin performance was the key negative surprise at MIL with real damper being gross margin contraction which was down 116 bps QoQ. For full year basis company crossed ~|11,000 crore mark for first time. We would await management commentary on margin front, however on a longer term basis we continue to like the stock tracking opportunity play driven by regulatory norms i.e. mandatory airbags, seat belt reminder sensors, etc & continued focus on increasing content per vehicle amid tangible work being done on the EV font.
Impact: Negative