Any current/future new fundraising through debt or equity?

There is no mention of any current plans to raise funds through debt or equity in the provided transcript. Sanjay Thakker mentioned that they do not intend to become an NBFC themselves currently. The company is focusing on profitable, high ROCE growth and maintaining a disciplined cost structure. Financial support discussions are noted with Renault during a difficult phase, but not as a fundraising. Overall, no explicit plans for new fundraising through debt or equity were disclosed in the call.

Any current/future capex/capital investment/strategic investment?

There is mention of an exceptional item related to CAPEX write-off for shifting the Jeep small workshop to a larger workshop in Jeep Delhi (Page 6). Discussions around expansion with Volkswagen include waiting for developments with Indian partners for growth and more locations, indicating potential future investment in new outlets (Page 8). No specific new large-scale capex or strategic manufacturing plant investments were detailed; for example, regarding BYD, establishing a manufacturing plant in India is uncertain and no definite plans were shared (Page 11). The company emphasizes profitable

Future growth expectations in sales/revenue/volumes?

Landmark Cars expects premiumization and luxury sales to be the key growth theme in India’s next decade, positioning the company for profitable high ROCE growth. Honda volumes are expected to more than double from September onwards with the launch of the Elevate model, which already has around 650 pre-bookings and is anticipated to be sold out for 3-4 months starting September. Jeep sales, which have been declining, are expected to bottom out in August and start an upward trajectory from September, targeting 800-900 units by October-November. MG Motor operations started recently in Madhy

Future growth expectations in earnings/operating earnings/profits/EPS?

Landmark Cars Limited aims for profitable, high ROCE growth focusing on premiumization and luxury sales as India moves into the next decade. Despite Q1 softness, management is confident of growth recovery with new launches (e.g., Honda Elevate). They expect working capital days to normalize around 40 days in coming quarters, aiding cash flow. After-sales revenue has strong traction with a 20% CAGR over 9 years, expected to continue. Pre-owned car sales targeted at over ₹100 crores this year, with plans for significant growth thereafter. Average selling price (ASP) rose 22% YoY, driven by premi

Current/ Expected Orderbook/ Pending Orders?

For the Honda Elevate model, the company currently has around 650 bookings. They expect to be sold out for at least 3 to 4 months by the time the car is officially launched, anticipated in early September. For the Mercedes GLC, the initial potential announced was around 1,500 units, which aligns with bookings so far, and demand has only increased in the few days since. Supply constraints for high-end models like GLC are expected to ease in the coming quarters. There's continuing demand and bookings for other high-end models, but specific numbers beyond the above are not provided.

IN US

Sale is live|00:00:00left today

Landmark Cars LtdQ2 FY24Automobiles

Landmark Cars Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹526P/E: 62.6Market Cap: ₹1.6K CrSector: Automobiles

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Landmark Cars expects premiumization and luxury sales to be the key growth theme in India’s next decade, positioning the company for profitable high ROCE growth.
→Honda volumes are expected to more than double from September onwards with the launch of the Elevate model, which already has around 650 pre-bookings and is anticipated to be sold out for 3-4 months starting September.
→Jeep sales, which have been declining, are expected to bottom out in August and start an upward trajectory from September, targeting 800-900 units by October-November.
→MG Motor operations started recently in Madhya Pradesh, with revenue expected to commence immediately.
→Pre-owned car business targeted to grow from ~₹100 crores to ₹200 crores in 2 years, aiming for profitability with a scalable business model.
→After-sales revenue has historically grown at 20% CAGR and is expected to continue this trajectory.
→Overall, the company aims to hit profitable, high ROCE growth despite near-term quarterly challenges.

Margin guidance

Category 3

→Landmark Cars Limited aims for profitable, high ROCE growth focusing on premiumization and luxury sales as India moves into the next decade.
→Despite Q1 softness, management is confident of growth recovery with new launches (e.g., Honda Elevate).
→They expect working capital days to normalize around 40 days in coming quarters, aiding cash flow.
→After-sales revenue has strong traction with a 20% CAGR over 9 years, expected to continue.
→Pre-owned car sales targeted at over ₹100 crores this year, with plans for significant growth thereafter.
→Average selling price (ASP) rose 22% YoY, driven by premium product mix and price increases.
→EBITDA margin at 5% on pro forma revenue with intent to maintain profitability while scaling.
→Management expects to outperform auto industry growth with double-digit growth guidance from key OEM partners like Mercedes Benz.

3 more insights locked — sign up free to unlock

Fundraise plans

→There is no mention of any current plans to raise funds through debt or equity in the provided transcript.
→Sanjay Thakker mentioned that they do not intend to become an NBFC themselves currently.
→The company is focusing on profitable, high ROCE growth and maintaining a disciplined cost structure.
→Financial support discussions are noted with Renault during a difficult phase, but not as a fundraising.
→Overall, no explicit plans for new fundraising through debt or equity were disclosed in the call.

Order book

Yes

→For the Honda Elevate model, the company currently has around 650 bookings.
→They expect to be sold out for at least 3 to 4 months by the time the car is officially launched, anticipated in early September.
→For the Mercedes GLC, the initial potential announced was around 1,500 units, which aligns with bookings so far, and demand has only increased in the few days since.
→Supply constraints for high-end models like GLC are expected to ease in the coming quarters.
→There's continuing demand and bookings for other high-end models, but specific numbers beyond the above are not provided.

Capex plans

Yes

→There is mention of an exceptional item related to CAPEX write-off for shifting the Jeep small workshop to a larger workshop in Jeep Delhi (Page 6).
→Discussions around expansion with Volkswagen include waiting for developments with Indian partners for growth and more locations, indicating potential future investment in new outlets (Page 8).
→No specific new large-scale capex or strategic manufacturing plant investments were detailed; for example, regarding BYD, establishing a manufacturing plant in India is uncertain and no definite plans were shared (Page 11).
→The company emphasizes profitable, high ROCE growth, implying any future investments would be carefully considered to maintain profitability (Page 13).
→Pre-owned business expansion is planned but mainly focused on business model development rather than heavy capital investment (Page 10).

How does Landmark Cars Ltd rank vs peers in Automobiles?

Pro feature

1Landmark Cars Ltd

Rev 3Mar 3

See full Automobiles sector rankings