Q1 2027 Lumax Auto Technologies Limited Earnings Call Transcript
Key Points
- Strong Q1 FY2027 performance with revenue up 33% YoY to INR1,364 crores and PAT up 83% YoY to INR99 crores, driven by robust demand across all vehicle segments.
- EBITDA margin expanded by 190 bps to 15.1%, supported by effective raw material cost pass-through and a favorable product mix, with management confident of sustaining these levels.
- Robust order book of INR1,600 crores provides strong revenue visibility, with 24% expected to be executed in FY2027 and the remainder spread over FY2028-29.
- Mechatronics division is a key growth driver, with revenue up 56% YoY and an order book of INR500 crores, supported by new product launches like the body control module and expansion into ADAS and telematics.
- Green Fuel Energy secured Mahindra as a new customer for CNG systems in passenger vehicles, with a new facility in Nashik planned, and the division maintains healthy margins of around 20% (excluding one-time tooling revenue).
- Global macroeconomic uncertainties, including geopolitical conflicts and commodity inflation, pose risks to supply chains and input costs, which could impact future performance.
- Aftermarket segment growth was subdued at 6% YoY due to a dip in non-lighting product categories, attributed to competitive pricing pressures and the need to pass on cost increases.
- The company's growth rates are expected to moderate in H2 FY2027 due to a higher base from the previous year's GST rationalization, making it challenging to sustain the current high growth levels.
- Some joint ventures, particularly in mechatronics, are still subscale and only EBITDA positive, with PBT profitability expected only in the next 12-24 months, limiting near-term margin contribution.
- The company's 20% revenue CAGR target relies partly on inorganic opportunities, but current valuations in the auto component space are elevated, making it difficult to find attractive acquisition targets.
Ladies and gentlemen, we welcome you all to the QNFI2027 earnings conference call of Lumax Auto Technologies Limited.
(Operator Instructions)
Mr. Anmol Jain, Managing Director.
A very good afternoon, everyone and thank you for joining us for Lumax Auto Technologies Limited Q1 FY2027 Earnings Conference Call. It's always a pleasure to welcome you all. I'm joined by our leadership team today, including Mr. Deepak Jain, Vice Chairman, Mr. Sanjay Mehta, Director and Group CFO, Mr. Vikas Marwah, CEO of the company, Mr. Ankit Thakral, the CFO of the company, Mr. Naval Khanna, Corporate Head Taxation, and Mr. Surbhi Channa, Group Head of Investor Relations and Value Creation, along with our Investor Relations Advisor, SGA.
We have uploaded our earnings presentation on the stock exchanges and the company's website. I do hope everybody had an opportunity to go through the same. Before discussing the company's performance, let me briefly touch upon the broader
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