LANDMARK CARS -
Q3 FY 24 highlights -
Brand wise dealerships -
Mercedes - 23
Honda - 21
Jeep - 19
VW - 25
Renault - 15
BYD - 7
MG - 10
Mahindra - 3
Ashok Leyland - 4
10 outlets out of the a/m outlets are slated to open in Q4 + Q1 ( FY 25 )
Out of these, only 02 outlets are owned. Rest are on lease. 25 pc of all outlets have been acquired
Avg selling price for Q3 FY 24 @ 19.33 lakh / car
Q3 financial outcomes -
Sales - 959 vs 876 cr
EBITDA - 65 vs 65 cr ( margins 8 vs 7 pc )
PAT - 18 vs 26 cr ( due increased depreciation costs )
After sales service is a high margin segment for the company. Have been growing @ 20 pc CAGR for last 9 yrs with 40 pc GMs, 18 pc EBITDA margins
Company started selling used cars about a year back. Sold cars worth 75 cr in 9M FY 24 ( a total of 641 cars ). Avg selling price / car @ 11.63 lakh
Segment wise revenues -
New car sales - 732 vs 684 cr ( could ve been higher if there were no supply issues at Mercedes Ltd. Mercedes growth should pick up in next FY )
EBITDA - 21 vs 27 cr
After sales service - 227 vs 191 cr
EBITDA - 43 vs 37 cr
Avg value / per servicing @ 25k vs 22.6k YoY
BYD - Seal, a popular model is about to be launched
Company has front loaded salary and depreciation expenses in Q3. Should bear fruits going fwd
Mercedes to launch 12 new models in India in FY 25. Should help their sales
BYD has applied for homologation so that the cap on total sales of 2400 cars / yr on CKD kits. Once approved, this cap of 2400 cars / yr goes away ( however the import duties remain )
In order to reduce their cost of operations, company is allocating half of current Jeep Showroom space to brands like Renault so that they are able to extract more sales volumes per sq ft
As MG and Mahindra numbers ramp up, sales volumes should rise rapidly and company should be able to better absorb increased employee expenses, depreciation
In Q3, luxury cars mkt grew by 20 pc but Mercedes could only grow by 9 pc due to severe supply shortages. This should get corrected in FY 25. The OEM is hard at work
Renualt India is committed to help out Landmark Ltd ( as in compensate the losses ) till they launch new models in calendar year 2025
Company planing to open outlets to sell car care products as well - wef FY 25. This again can be a descent business opportunity
Order book for Mercedes is really strong. Its just a matter of car availability for sales to materialise
Company sold 5400 new cars in Q3
Disc: holding, added recently- post Q3, biased, not SEBI registered, not an investment advice
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