Lumax Auto Technologies (LUMAXTECH) Q4 13/14 earnings summary

Executive summary

• FY2013-14 consolidated sales were ₹7,627.57 million vs ₹7,663.04 million; PAT fell to ₹302.13 million from ₹410.66 million, with Bangalore facility depreciation and interest costs cited as pressures.

• Standalone sales grew 10.11% to ₹4,766.10 million, while standalone PBT declined to ₹225.00 million from ₹327.13 million.

Financial highlights

• Consolidated EBDITA was ₹642 million vs ₹708 million; EBDITA margin was 8.41% of sales vs 9.23%.

• Standalone PAT was ₹150.19 million vs ₹222.98 million; basic and diluted EPS was ₹11.02 vs ₹16.36.

• Consolidated PBT was ₹429.09 million vs ₹594.02 million; consolidated EPS was ₹22.16 vs ₹30.13.

Outlook and guidance

• IMF projected India’s FY2014-15 growth at 5.4%; policy reforms, investment revival and improving external conditions were expected to support a gradual recovery.

• Auto sales recovery was expected to gain support after the first two quarters of FY2014-15 from industrial activity, infrastructure spending and improved consumer sentiment; exports and replacement demand were expected to remain healthy.

• LCAT expected SOP for three Tata Motors air-intake programs in Q2 FY2014-15; Nano exhaust commercial production was expected by late Q2, subject to customer program timing.

• The new seat-frame JV’s commercial operations were expected to commence during FY2014-15.