Lumax Auto Technologies (LUMAXTECH) Q4 16/17 earnings summary

Executive summary

• Consolidated revenue rose 11.84% YoY to ₹10,123.16 mn, crossing ₹10,000 mn for the first time; EBITDA increased 14.52% to ₹864 mn and PAT before minority interest rose 12.49% to ₹384.37 mn.

• Demonetisation hurt standalone two-wheeler and aftermarket operations, while subsidiaries and JVs supported consolidated growth through diversified products and customer markets.

Financial highlights

• Consolidated net profit after minority interest increased 7.48% YoY to ₹341.43 mn from ₹317.66 mn.

• Standalone net sales fell to ₹5,082.60 mn from ₹5,619.30 mn; PAT declined to ₹50.98 mn from ₹195.50 mn.

• Standalone exceptional employee-separation cost was ₹32.24 mn; reported PBT was ₹71.02 mn versus ₹270.44 mn.

• Consolidated operating cash flow was ₹674.88 mn; capital expenditure, including CWIP and advances, was ₹413.99 mn.

Outlook and guidance

• GST was expected to improve aftermarket competitiveness through tax credits; plans included expanding the retail network toward 15,000 points and creating a dedicated new-product development team.

• BS-VI requirements, due across vehicle segments from April 1, 2020, were viewed as an opportunity for emission systems and related components, supported by the Cornaglia partnership.

• Strategy priorities included expanding products and customers, exploring sensor technology, telematics and fleet management, increasing automation, and pursuing technical collaborations and capacity enhancement.

• Electric-vehicle growth was seen as an opportunity, building on gear-lever supply for electric cars; no quantified company-level revenue or earnings guidance was stated.