Lumax Auto Technologies (LUMAXTECH) Q4 17/18 earnings summary

Executive summary

• FY17-18 consolidated revenue excluding excise duty rose 15.13% to ₹1,111.47 crore; PAT after minority interest increased 41% to ₹48.74 crore.

• Growth reflected higher volumes from Bajaj Auto, Honda Motorcycles & Scooters India and Maruti Suzuki, alongside improved operating efficiencies and subsidiary/JV performance.

Financial highlights

• Consolidated revenue from operations was ₹1,138.51 crore versus ₹1,039.70 crore; excluding excise duty, revenue was ₹1,111.47 crore versus ₹965.42 crore.

• EBITDA was ₹113.93 crore versus ₹88.30 crore; EBITDA margin expanded 170 bps to 10.3% from 8.6%.

• PBT rose 53% to ₹85.86 crore; PAT after minority interest reached ₹48.74 crore versus ₹34.50 crore.

• Consolidated EPS increased 41% to ₹35.76 from ₹25.31; standalone revenue from operations grew 24% to ₹607.51 crore.

Outlook and guidance

• Recovery in OEM demand, new client wins, value-added products and margin improvement underpin expectations for stronger bottom-line growth in coming years.

• BS-VI implementation from 2020, lower-emission vehicles and rising demand for automatic shifters present growth opportunities; higher-priced automatic shifters are expected to support profitability.

• Aftermarket expansion targets lighting, filters, mirrors, horns, cables and electronics; the sector was projected to grow 10–15% annually and reach USD 16.5bn by 2021.

• New Pune and Aurangabad facilities were expected to begin operations in August and October 2018, respectively.