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Landmark Cars edges higher after revenue rises nearly 14% in Q2

15-Oct-24 13:55 Hrs IST

Revenue from After-sales service and spare parts and others aggregated to Rs 234 crore (up 10.90% YoY), Vehicle sales revenue amounted to Rs 1,013 crore (up 15.24% YoY) and earnings from sales of Pre-owned vehicle (including commission) added up to Rs 28 crore (down 6.67% YoY).

For H1 FY25, the company has recorded a total revenue of Rs 2,439 crore, up 18.74% YoY.

In the Q2FY25, the company operationalised all the 11 facilities as per the plan. The facilities for Kia Kolkata, Honda Jaipur, the additional outlet for BYD Mumbai (Sales), Mercedes-Benz Hyderabad (Aftersales) and MG Motors Mumbai (Aftersales) were started.

In the Q3FY25, 7 facilities for Mahindra & Mahindra Hyderabad and Kia Hyderabad (Sales) have already started operations. The company has completed 23 out of the 25 new outlets planned for this FY well within the planned timeline.

Multiple new product launches have been unveiled across our partner OEM's. All the new launches have received a very positive response, and we expect them to begin contributing positively in H2FY25,' Landmark Cars stated.

In a market where the average new car inventory levels have increased from 62-67 days in Q1 to approximately 80-85 days in Q2 as per the latest FADA report, the company has been successful in reducing inventory from existing outlets QoQ.

To avoid being stuck with excess inventory in a market where prices for used cars are falling, the company has taken a proactive decision to go slow on the pre-owned business.

We will wait for the prices to stabilise before pushing the pedal,' it added.

The company has opened 8 new workshops in Q1 and Q2 in addition to the workshops which will be opening in Q3 as a part of its plan. Once these workshops stabilise, they will start contributing to the long-term service business.

Landmark Cars is the leading premium automotive retail business in India with dealerships for Mercedes Benz, Honda, Jeep, Volkswagen, BYD, Renault, Mahindra & Mahindra and MG Motors. The company also caters to the commercial vehicle retail business of Ashok Leyland in India. The company has its presence across the automotive retail value chain, including sales of new vehicles, after-sales service and repairs, sales of pre-owned passenger vehicles and facilitation of the sales of third party financial and insurance products.

The company's consolidated net profit dropped 54.84% to Rs 3.17 crore in Q1 FY25 as compared with Rs 7.02 crore in Q1 FY24. Revenue from operations jumped 19.89% YoY to Rs 831.97 crore in Q1 FY25.