Lumax Auto Technologies soars with 20% revenue increase in Q1 FY 25– Discover the key factors behind the surge

Lumax Auto Technologies Ltd., a prominent player in the automotive components industry, has announced its unaudited financial results for the first quarter of the fiscal year 2025, ending June 30, 2024. The company reported impressive growth across key financial metrics, highlighting a robust performance despite the broader economic context.

Impressive Revenue and Profit Growth

Lumax Auto Technologies Ltd. achieved a revenue of ₹756 crore in Q1 FY25, marking a 20% increase from ₹632 crore in the same quarter of the previous fiscal year. This growth underscores the company’s strong market position and its successful implementation of strategic initiatives.

The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the quarter stood at ₹105 crore, up 20% year-on-year, with EBITDA margins maintaining at 14.0%. This stable margin reflects effective cost management and operational efficiency.

Profit After Tax (PAT), including minority interest, rose significantly to ₹32 crore from ₹22 crore in Q1 FY24, representing a 43% increase. This notable growth in PAT highlights Lumax’s ability to enhance profitability and manage expenses effectively.

Operational and Strategic Developments

The company’s revenue breakdown reveals that passenger cars were the largest contributor, accounting for 50% of total revenues. Two-wheelers followed with 24%, commercial vehicles at 8%, and aftermarket products at 12%. The remaining 6% was attributed to other categories.

In a significant business update, Lumax Auto Technologies Ltd. has filed a draft scheme of merger with the National Company Law Tribunal (NCLT) for merging its 100% subsidiary, Lumax Ancillary Limited. The merger, slated to be effective from April 1, 2024, is aimed at optimizing resource utilization and achieving operational synergies.

Additionally, the company’s Bengaluru plant has successfully cleared the first stage assessment of “Excellence in Consistent TPM Commitment” by the Japan Institute of Plant Maintenance (JIPM), with a final assessment scheduled for January 2025.

The Board of Directors has also approved the establishment of an office in Japan. This move is intended to explore new business opportunities and bolster the company’s technological capabilities, reflecting its commitment to expanding its global footprint.

Expert Opinion and Future Outlook

Anmol Jain, Managing Director of Lumax Auto Technologies Ltd., expressed satisfaction with the company’s quarterly performance. Jain noted, “We are delighted to report robust performance for the quarter with revenues growing by 20% for Q1 FY25 standing at ₹756 crore. EBITDA for the quarter stood at ₹105 crore, growing by 20% with EBITDA margins at 14%. This growth reflects our unwavering commitment to excellence and the effectiveness of our strategic initiatives.”

Jain further commented on operational achievements, stating that the increased share of the passenger vehicle segment is driven by a strong order book and effective execution. He expressed confidence in sustaining this momentum and capitalizing on opportunities in the expanding Indian passenger vehicle market. Jain also acknowledged the broader industry context, mentioning the clearance of higher inventory levels in anticipation of new model launches later in the year.

Looking ahead, Jain emphasized the company’s focus on deepening customer relationships and enhancing product value. “Our robust Q1 performance lays a strong foundation for the remainder of FY25. With a clear focus on innovation, execution, and customer satisfaction, we are poised to achieve sustained growth and deliver exceptional value to our stakeholders,” he concluded.

Lumax Auto Technologies Ltd., through its wholly owned subsidiaries and joint ventures, is a leading manufacturer of a wide range of automotive products. The company excels in the design, testing, and manufacturing of gear shifters and interior solutions in India, supported by a robust distribution network with 26 manufacturing plants across key automotive clusters in the country. Key customers include Mahindra & Mahindra, Bajaj Auto, Honda Motorcycles and Scooters, Maruti Suzuki, Tata Motors, and Toyota.