Landmark Cars Q1 Profit Soars 97.5% on Strong Revenue

Landmark Cars reported a significant increase in its consolidated net profit for the quarter ended June, nearly doubling to ₹14.5 crore. This surge represents a 97.5% year-on-year jump, bolstered by robust revenue growth.

Q1 Financial Highlights

• Consolidated Net Profit: ₹14.5 crore, up 97.5% YoY from ₹7.3 crore.
• Revenue from Operations: ₹1,733 crore, a 22.47% increase year-on-year.
• Vehicle Sales (agency & pre-owned): ₹1,465 crore, marking 24.15% growth.

The premium automotive retailer attributed 38% of its total revenue to Mercedes-Benz sales, operating under an agency model that generates commission for the company. After-sales services also contributed significantly to the financial performance.

Service Segment Performance

• After-sales Revenue: ₹268 crore, up 14.04% year-on-year.
• Average Service Revenue per Car: ₹27,172.
• Analysis confirmed higher electric vehicle (EV) penetration does not negatively impact after-sales revenue.

At the operational level, the company’s EBITDA rose by 13.7% year-on-year, reaching ₹75.2 crore. However, the EBITDA margin experienced a slight contraction, moving to 4.34% from 4.67% in the previous fiscal year.

Strategic EV Expansion

Landmark Cars has also diversified its revenue streams through a new partnership with ChargeZone, an EV charging network. This collaboration aims to provide wallet credits to Landmark EV customers and promote ChargeZone services at relevant company locations.

Stock Market Recovery

The company’s stock has shown a steady recovery in recent months, returning to positive territory this year after a strong rally post-debut in December 2022, followed by a prolonged correction.

• July Gain: 23.5%.
• August Gain: 6%.
• Currently 14% below its recent peak of ₹662.
• Remains 37% down from its all-time high of ₹905.