18 Feb , 2025 By : Debdeep Gupta
Shares of Uno Minda gained as much as 2 percent to Rs 909 in morning trade on February 18, snapping its three-day losing streak, after the auto components manufacturer announced that it has entered into a joint venture agreement with Suzhou Inovance Automotive Co Ltd and its wholly-owned subsidiary, Inovance Automotive (HK) Investment Co Ltd.
The collaboration will focus on the development and production of high-voltage EV powertrain products for both passenger and commercial vehicles.
Under the terms of the agreement, Inovance Automotive (HK) Investment Co will acquire a 30 percent stake in Uno Minda Auto Innovations Private, a wholly-owned subsidiary of Uno Minda. The subsidiary will then be transformed into a joint venture, with Uno Minda holding a 70 percent stake. This venture will specialize in manufacturing crucial EV powertrain components such as combined charging units, E-axles, inverters, and motors.
The joint venture will operate within India, with products marketed under both Uno Minda and Inovance Automotive brands. The governance structure will feature eight directors, with Uno Minda appointing five, including the chairman, and Inovance Automotive appointing three. The agreement includes governance mechanisms, including board representation rights, share transfer restrictions, and provisions concerning capital structure changes.
This partnership is an extension of Uno Minda’s relationship with Inovance Automotive, following a technical license agreement signed in June 2024. The venture aims to capitalize on Inovance Automotive’s EV powertrain expertise, enhancing Uno Minda’s presence in the electric vehicle component market.
The Gurugram-based auto component maker reported a 20 percent year-on-year increase in net profit, reaching Rs 157 crore, up from Rs 131 crore in the previous year. The company’s revenue also saw a 20 percent rise, growing to Rs 3,136 crore from Rs 2,611 crore in the same quarter last year. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter stood at Rs 301 crore, with the margin slightly adjusting to 9.6 percent, compared to 10.2 percent in the corresponding period last year.
At about 9:40 am, shares of the company were trading at Rs 900, higher by 1.2 percent from the last close on the NSE. Uno Minda shares cracked over 8 percent last week, and a steep 17 percent last month.
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