Landmark Cars net profit nearly doubles to ₹14.5 crore in Q1; revenue rises 22%

Landmark Cars, one of the leading premium automotive retail businesses, posted a strong set of numbers for the quarter ended June on Tuesday, post-market hours. The company reported a consolidated net profit of ₹14.5 crore, a 97.5% jump from ₹7.3 crore in the same period last year.

Revenue from operations, including agency sales, rose 22.47% year-on-year to ₹1,733 crore. Vehicle sales, including agency sales and pre-owned vehicle sales, increased 24.15% YoY to ₹1,465 crore.

The revenue includes sales generated under Mercedes-Benz's agency model, under which customers place orders directly with Mercedes-Benz India Ltd. (MBIL). Under this arrangement, Landmark Cars earns a commission on each Mercedes-Benz vehicle sold through its dealerships.

Mercedes-Benz alone contributed 38% of the company's revenue during the quarter. Meanwhile, revenue from after-sales services, spare parts, and other businesses grew 14.04% YoY to ₹268 crore, according to the exchange filing.

The average service revenue per car increased to ₹27,172. The company said its internal analysis of two brands that have both internal combustion engine (ICE) and electric vehicle (EV) models suggests that higher EV penetration does not negatively impact after-sales revenue.

At the operating level, the company reported an EBITDA of ₹75.2 crore, up 13.7% YoY. However, the EBITDA margin stood at 4.34%, compared with 4.67% in the same period of the previous fiscal, indicating a contraction of around 33 basis points.

New revenue stream

ChargeZone is an EV charging network in India with integrated technology, software systems, and renewable energy capabilities.

Under the arrangement, ChargeZone will provide Landmark EV customers with wallet credits that can be used at ChargeZone charging locations.

Landmark Cars will facilitate the promotion of ChargeZone at relevant locations to onboard both new and existing customers onto the platform.

The partnership is expected to create an additional recurring revenue stream for Landmark Cars as it seeks to capitalise on the growing base of EV customers across its portfolio.

Recovery gathers pace

Landmark Cars has been witnessing a steady recovery in recent months. The stock gained 23.5% in July and another 6% so far in August, extending its rebound.

Despite the recent rally, the shares remain 14% below their recent peak of ₹662 and are still down 37% from their all-time high of ₹905.

The stock made its Dalal Street debut in December 2022 and enjoyed a strong rally through 2023 and much of 2024 before entering a prolonged correction that dragged it to an all-time low of ₹329.

On an annual basis, the stock delivered negative returns in each of the past three calendar years. However, the latest rally has helped it return to positive territory this year.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.