Dolat Capital: Lumax Industries Posts Weak Q1, Recovery Ahead

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Lumax Industries Ltd. posted weak numbers in Q1 due to various challenges such as demand slowdown, supply chain constraints and lower production by original equipment manufacturers (OEMs).Revenue de-grew 81% YoY to Rs 780 million (versus estimated Rs 1.02 billion).Molds parts revenue de-grew 64% YoY to Rs 41 million. Ebitda turned negative to Rs 349 million due to negative operating leverage. Adjusted profit after tax loss stood at Rs 316 million.Given the leadership in the automotive lighting business, strong relationships with OEMs (Maruti Suzuki India Ltd., Honda Motorcycle and Scooter India and Hindustan Motors Ltd.) Lumax Industries is a good bet to play on recovery in passenger vehicles and two-wheelers.Although Q1 FY21 was a complete wash out, recovery from July onwards is encouraging with production levels having reached 80% of normal levels.Further the company is focused on cost rationalisation and preserving cash to help tide over the disruption caused by Covid-19..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Lumax Industries Posts Weak Q1, Recovery Ahead

Dolat Capital: Lumax Industries Posts Weak Q1, Recovery Ahead

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