Landmark cars Q1 concall highlights –
Sales- 694 vs 800 cr
EBITDA- 44 vs 51 cr ( margins constant @ 6.4 pc )
PAT- 7.3 vs 18 cr
Indian auto Industry grew by 10 pc YoY despite a high base
The company’s OEMs – VW, Honda, Mercedes, Renault, MG did not participate in Q1’s growth
Second Qtr onwards, sales may be pickup due –
1.Launch of Mercedes GLC which has received bookings (>1500 cars) amounting to aprox 1200 cr
2.Launch of Honda Elevate which is seeing very good customer response. Honda sales de-grew 37 pc in Q1 due discontinuation of Jazz, WRV
- Start of MG Motors operations in Q2 at Bhopal and Indore
- Have started receiving BYD cars which were stuck up for over 2 months
- Launch of Jeep’s new 4×2 Diesel version
After sales business continues to be strong
Have started a new business of selling pre owned cars
Avg selling price of new cars at 19.5 vs 15.6 LY
Avg cost of servicing/car is also up 9 pc vs LY
Gross margins @ 15 pc (sales + service + sale of pre owned cars)
Aim to hit 100 cr sales from the sale of pre owned cars this yr
Management believes, they can make money here from sale of 1st car onwards as no new infra / manpower is being employed here
In active conversation with MG Motors for allotment of new locations. Awaiting clarity on selection of their Indian partner before going ahead
Jeep India’s management has changed and they have a renewed focus on India. Jeep’s numbers likely to recover to 800-900 units/month and with Jeep’s avg selling price, that’s a good business
Renault going to launch new models in about 16-18 months
Renault providing financial support to Landmark in the interim
VW opening low cost/small outlets in Gujarat through Landmark to drive incremental sales
Once the company is able to crack the pre-owned car sales business in a profitable way, they can easily & quickly scale up
Currently, BYD is allowed to import only 2500 cars / year in CKD format. Even this is a profitable business as the Margins here are high. Company may go ahead with an Indian partner to expand its manufacturing footprint in India
Company is expecting to get advance bookings for 700-800 Elevate car units. That should amount to Aprox 100 cr sales (rough calculation)
Company’s share in various OEM’s India sales –
Mercedes- 16 pc
Honda- 6 pc
Jeep- 26 pc
VW- 10 pc
Renault- 5 pc
New partnerships – BYD, MG, Ashok Leyland
Disc: hold a tracking position
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