Lumax Auto Technologies hits new high post Q2 results

The stock hit a new high of Rs 662, up 8% on the BSE in early morning trade, after the company reported 13% growth in net profit at Rs 13.33 crore in September quarter

Lumax Auto Technologies hit a new high of Rs 662, up 8% on the BSE in early morning trade, after the company reported 13% growth in net profit at Rs 13.33 crore in September quarter. The auto ancillary company had profit of Rs 11.75 crore in year ago quarter.

Revenue grew 4% at Rs 268 crore during the quarter under review against Rs 258 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin increased 90 basis points to 10.7% against 9.8% in last year, largely on account of better operating efficiencies and improved performance of the subsidiaries & joint ventures.

There is a higher taxation in the Pantnagar plant, as exemption for tax benefits is no longer available from this financial year, the company said.

Commenting on the results Anmol Jain, Managing Director, Lumax Auto Technologies said ‘Post the implementation of GST, Aftermarket business has witnessed a strong recovery in sales for the current quarter. There has been sustained growth in volumes of Bajaj Auto and the passenger vehicles segment led by Maruti Suzuki.

“We expect the growth momentum to sustain on the back of the good monsoons resulting in improved rural demand & lower interest rates for vehicle financing. The company’s diverse product portfolio and customers will enable us to post a strong performance going forward,” he added.