- 14 Aug 2024
- ICICI Securities
LANDMARK CARS REPORTS DISMAL PERFORMANCE ACROSS ALL PARAMETERS, PAT COMES AT A NEW LOW
LANDMARK - 486 Change: -6.95 (-1.41 %)News: Topline for the quarter came in at ₹832 crore (up 20% YoY). EBITDA in Q1FY25 came in at ₹48.5 crore (up 9.3% YoY, down 9.4% QoQ) with corresponding EBTDA margins at 5.8% (down 60 bps YoY, 40 bps QoQ). Resultant PAT for the quarter came in at mere ₹3.4 crore vs. ₹ 7.3 crore in Q1FY24 and ₹ 11.0 crore in Q4FY24. EBITDA margins in the new car sales segment dropped to 1.4% while the same in servicing segment dropped to 16.5%.
Views: Quarterly performance at Landmark cars came in below our expectations especially on the profitability front and could be due to higher fixed cost, as the company opened new outlets in Q1FY25, which are expected to reach their full potential in the next 3 to 4 quarters. We await management commentary on path of profitable growth amid series of upcoming launches in the premium PV space which could help the company post better numbers going forward.
Impact: Negative