- 16 Jul 2024
- ICICI Securities
LANDMARK CARS REPORTS STEADY REVENUE FOR Q1FY25
LANDMARK - 429 Change: 5.00 (1.18 %)News: As per the business update released by the company, total revenue from operations (including agency sales) for the quarter came in at ₹ 1,166 crore, up by 24.7% YoY. Within this, Vehicle sales (including agency sales) amounted to ₹ 918 crore, up by 26% YoY and After Sales service reported revenue growth of 15.8% YoY to ₹ 220 crore. Pre-owned vehicle segment also reported a revenue of ₹ 28 crore, up by 64.7% YoY.
Views: Despite reporting double digit growth YoY in every segment, the revenue for the quarter came in below our expectations. This was amidst commencing operations of MG Motor- Ahmedabad and Mumbai in Q1FY25. Additionally, in the after-sales service front, we anticipated the revenues of ~₹ 250 crore for Q1FY25 vs. reported revenue of ~ ₹ 220 crore. Looking ahead, Landmark Cars plans to commence operations of Kia (Kolkata) and Honda (Rajasthan) in Q2FY25. It also shared those operations for MG Motor (aftersales) in Mumbai and Mercedes Benz (aftersales) in Hyderabad, is expected to commence soon. These expansions are expected to bolster the company’s position as a leading premium and luxury auto retailer. With long term investment horizon, we continue to have a positive view on the company.
Impact: Neutral