Q3FY24 results - https://www.bseindia.com/xml-data/corpfiling/AttachLive/4a93bd5d-47c7-46ad-8f3f-cc4704d5b74b.pdf
Q3FY24 earnings call recording - https://www.youtube.com/watch?v=tckyTAbLC4A
Sales have grown 65% YoY and OPM have expanded to 14%
Q2FY24 concall management had indicated the following
The total order book of Lumax Auto Technologies Limited is reported to be INR 1050 crores, with 93% of this being new business. The electric vehicle (EV) segment contributes to 40% of the total order book value.
Breakdown and Realization:
- FY25: Approximately 50% of the order book is expected to be realized as per Q3FY24 concall.
- FY26: Another 30% of the order book is expected to be realized as per Q3FY24 concall.
- FY27: The remaining 20% of the order book is expected to be realized.
With the realization of the order book over the next two to three years, it is expected that the company’s asset turns would improve significantly compared to what has traditionally been achieved.
Some of the notable joint ventures other than IAC and their orderbook
- Lumax Mannoh Allied Technologies:
- This 55% subsidiary manufactures manual, AMT, and automatic gearshift systems. It has the market leadership position and contributed 13% to the total consolidated revenues. The company has a healthy order book of around INR 60 crores. Its exports business for automatic gear shifters is performing well, and efforts are underway to increase market reach. Orderbook as of Q3FY24 stands at 55 Cr
- Lumax Cornaglia Auto Technologies:
- This 50% subsidiary, manufacturing air intake systems and urea tanks, commands a 100% share of business with Volkswagen and Tata Motors, contributing 6% to total consolidated revenues. The joint venture has a strong order book of INR 80 crores. A new facility is expected to commence from Q4, adding plastic fuel tanks as a product. Orderbook as of Q3FY24 stands at 70 Cr
- Lumax Ituran Telematics Private Limited:
- This JV has commenced supplies of telematics parts to Daimler India in the current quarter. The volumes are expected to grow significantly in the remaining part of the financial year with the addition of new product ranges. Orderbook as of Q3FY24 stands at 35 Cr
- Lumax Alps Alpine India Private Limited:
- A 50% subsidiary focused on the manufacturing and sale of electric devices and components, including software related to the automotive industry. It contributed 1% to the total consolidated revenues. There are aggressive targets for this JV, with discussions to make India a global production base for a few components. Orderbook as of Q3FY24 stands at 110 Cr
Q3FY24 concall highlights:
Growth in the two-wheeler segment has been buoyed by the festive season and weddings, contributing to an uptick in demand. Nevertheless, Lumax’s standalone business for frame and plastic components has experienced a decline, attributed to weaker demand for Platina and CT models, witnessing a 15% and 40% decrease in demand, respectively. Despite this downturn, Lumax, as the exclusive supplier for certain components, reports robust demand in the premium bike segment. Lumax is strategically aiming to expand its share of the customer’s wallet by enhancing the value of its offerings, including the addition of paint or coating services for the chassis of these premium bikes. The company already boasts a partnership with KTM and supplies components for some of Bajaj’s electric vehicle (EV) variants. Efforts are underway to extend its supply chain to include the Pulsar platform, indicating Lumax’s commitment to diversifying its product line and capitalizing on new opportunities within the evolving two-wheeler market.
The tailwind in the auto sector are
a. Increased safety norms - e.g Bharat NCAP which will benefit large Tier 1
b. Emission norms.
The order book remains at 1100 Cr (IAC Orderbook being 600 - 650 Cr) and is expected to realise 50% by FY25 and 30% by FY 26.
40% of the orderbook is from EV - Mahindra Born electric and Bajaj EV.
The company expects a topline growth of 25% in FY25 driven by the JVs and IAC India.
chart also looks great with consolidation ongoing for the last 6 months and volumes are high as well.
disclaimer : Tracking, reading the company and updating this post on the go.