Release Date: May 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lumax Industries Ltd (BOM:517206, Financial) reported its highest ever revenue in both Q4 and FY25, with Q4 revenue at INR923 crores, a 24% year-on-year growth.
- The company achieved a full-year revenue of INR3,400 crores, marking a 29% year-on-year increase, driven by an optimized product mix and strong traction in high-value LED lighting.
- LED lighting accounted for 58% of total revenue in FY25, up from 39% the previous year, highlighting the company's strategic focus on this segment.
- The company has a healthy order book of INR2275 crores, with 37% dedicated to electric vehicles and 85% allocated to the Passenger Vehicle segment.
- Lumax Industries Ltd (BOM:517206) has strengthened its relationships with leading OEMs, securing new projects for marquee passenger and two-wheeler models, including lighting solutions for major brands like Maruti Suzuki and Honda Motor Scooters India.
Negative Points
- The company's EBITDA margin for FY25 was 9.2%, which, while marking the highest quarterly margin performance of the fiscal year, indicates pressure from increased LED concentration.
- Despite strong revenue growth, the company's consolidated profit after tax margin for FY25 stood at 4.1%, reflecting challenges in maintaining profitability.
- The tooling business, which contributed significantly to revenue, is expected to see a decrease in top-line generation in the coming year.
- The company faces competitive pressures and margin constraints due to the high cost of LED technology and the need for strategic investments.
- Lumax Industries Ltd (BOM:517206) has a high dependency on a few key clients, with 58% of FY25 revenue coming from three clients, which could pose a risk if any of these clients reduce their orders.
Q & A Highlights
Q: Could you explain the significant jump in revenue from Honda Motor Scooters India (HMSI)? Is it due to volumes or a shift from conventional to LED lighting?
A: The increase is primarily due to new models from Honda, specifically the Activa and Shine, which are now single-sourced from us for lighting. This growth is driven by improved wallet share rather than volume gain. - Ravi Teltia, CFO and Anmol Jain, Joint Managing Director
Q: What are the EBITDA margins excluding the tooling business, and what is the projected tooling revenue for FY26 and FY27?
A: The manufacturing EBITDA margin for Q4 is 9.8% and 8.7% for the full year. We expect tooling revenue to be around INR 240-260 crores for FY26. - Ravi Teltia, CFO
Q: How is the customer mix expected to change, particularly with Maruti Suzuki's contribution to the order book?
A: We anticipate growth across our top OEMs, with Maruti Suzuki expected to contribute significantly due to increased wallet share, especially in taillamps. Approximately 55-60% of our order book is from Maruti Suzuki. - Anmol Jain, Joint Managing Director
Q: What are the CapEx plans for FY26 and FY27, and how will this affect the debt profile?
A: We plan a CapEx of INR 180-220 crores for FY26, with no new term loans anticipated. We aim to repay INR 70-80 crores of debt this fiscal year. - Anmol Jain, Joint Managing Director and Ravi Teltia, CFO
Q: Can you provide insights into the market share for LED and non-LED businesses?
A: While specific market share data for LED and non-LED is challenging to provide, we have significant wallet shares with key OEMs: 27-30% with Maruti Suzuki, 50% with Mahindra & Mahindra, and 60% with HMSI. - Anmol Jain, Joint Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
