- 19 Apr 2024
- ICICI Securities
LANDMARK CARS REPORTS STEADY REVENUES FOR Q4FY24
News: As per Business Update from Landmark Cars, the total revenue from operation (including agency sales) for the quarter came in at ₹ 1311 crores, up by 8% YoY. Within this, Vehicle Sales (including agency and pre-owned vehicle sales) amounted to ₹ 1090 crores (up by 7.5% YoY) and After Sales Service reported a revenue growth of 13% YoY to ₹ 221 crores.
Views: Company performance in Q4FY24 was short of our expectations amidst its marquee partner i.e. Mercedes Benz reporting healthy double digit volume growth (15% YoY) for the quarter. Even on the after-sales service front, we had built in revenues of ₹ 240 crore in Q4FY24 vs. the reported revenues of ~₹ 220 crore. The only positive surprise was pre-owned vehicles sales commission which was ahead of our full year estimates at ₹ 117 crore. Going forward, Landmark Cars plans to expand its operations in FY25 with partners such as Kia in Hyderabad, MG Motors in Mumbai, BYD in South Mumbai, and Mercedes Benz service centre in Hyderabad & Mumbai. These expansions are expected to strengthen the company’s position as leading premium and luxury auto retailer. We remain positive on the company given the ongoing premiumization trends in the domestic PV space, supported by its long-standing relationships with top-tier OEMS and healthy financial profile (ROCEs: ~20%+ & CFO yield: ~5% on forward basis).
Impact: Neutral