Lumax reports strong quarter, boosted by 46% sales growth

Lumax, India’s biggest maker of automotive lamps, reported a 32% increase in its Apr-Jun quarter, boosted by a sharp increase in revenue.

Revenue jumped to Rs 496 cr, up 46% compared to the same quarter a year ago, while net profit rose to Rs 20 cr, up from Rs 15 cr in the same quarter last year.

Operating profit margin improved to 8.3% from 7.8% a year ago. “The expansion in margins is on account of optimization of fixed overheads due to increased sales,” the company said.

The company unveiled two new models, the rear combination lamp of Toyota Yaris and the headlamp of Honda scooter Aviator.

“We have grown our capabilities & capacities to capture future demand of the Indian Auto Industry,” said company CMD Deepak Jain.

“The Indian automotive industry is at the cusp of a major shift towards energy efficient, technologically superior and high on aesthetic appeal auto components, which will be further boosted by shift to BSVI norms and introduction of Electric Vehicles,” he said.

EBITDA, an indicator of the cash generated by the core operation of the company before accounting for costs like taxes and interest payments, jumped to Rs 41 cr from Rs 26 cr a year ago.

Jain said the company will continue with its cost-cutting initiatives.

“We continue to strategize on reducing costs and focus on new product development with help of our in-house R&D teams,” he added.