Lumax Auto Technologies Limited — Investor Meet, 20-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Lumax Auto Technologies reported robust revenue growth of 24% in Q3 FY '25, reaching INR 906 crores, the highest single-quarter revenue to date. For the first nine months, revenue stood at INR 2,504 crores, marking a 21% increase. The EBITDA margin for Q3 held steady at 14%, with absolute EBITDA rising to INR 127 crores, a 9% increase year-on-year. Net profit before minority interest was INR 56 crores, up 17% from INR 48 crores in Q3 FY '24.

**Future Outlook and Growth Drivers:** Management remains optimistic about future growth, driven by rising disposable incomes and government capital expenditure. They foresee industry demand resilience, especially post-tax exemptions in the recent budget, and believe new product launches will fuel sales in the upcoming quarters.

**Order Book and Operational Updates:** The total order book now stands at INR 1,350 crores, with 90% classified as new business. Key segments include Advanced Plastics with an order book of INR 660 crores and Mechatronics at INR 320 crores, showcasing strong growth potential.

**Analyst Q&A Insights (Detailed):**

- Concerns on revenue growth were addressed, emphasizing the expected 15-20% increase in revenue for FY '26, driven largely by new EV launches.

- Analysts queried about operational challenges, particularly pertaining to supply chain dynamics and competitive pressures, which management confirmed they can navigate effectively.

- On capital allocation, the management indicated a capex guidance of INR 130-140 crores for the full year, maintaining a healthy cash reserve of INR 315 crores.

**Market or Regulatory Updates:** The onset of OBD2 regulations is expected to positively impact revenues, specifically from new product lines within the 2-wheeler segment, enhancing content per vehicle.

**Strategic Focus Areas:** The company is prioritizing technological advancements and product diversification, particularly in EV segments. There's a notable emphasis on sustainable mobility solutions and integrating operations post the acquisition of Greenfuel Energy Solutions.

**Investor Insight:** The promising financial performance and strategic direction suggest a favorable positioning for growth, leading to a stance aligning more with a 'buy' position. Despite potential risks from rising raw material costs and regulatory impacts, the robust order book and management’s proactive strategies appear to mitigate such concerns, indicating a strong long-term outlook.