Landmark Cars Shares Soar 20% on Record Q1 Sales

Shares of Landmark Cars Ltd touched an intraday high of Rs 507.45 on the NSE on 14 July, jumping close to 20% during the session.

The move came after the auto retailer posted its best ever first quarter performance, with sales rising sharply across both new vehicle and after sales business.

The company’s revenue from operations for the June quarter climbed 22.47% year on year to Rs 1,733 crore. Vehicle sales, which include agency sales and pre owned car sales, grew 24.15% to Rs 1,465 crore. Revenue from after sales service and spare parts rose 14.04% to Rs 268 crore.

Part of this revenue comes from Mercedes-Benz’s agency model, where buyers place orders directly with Mercedes-Benz India, and Landmark Cars earns a commission on every vehicle sold through its showrooms.

This arrangement continues to add to the company’s topline without the firm having to hold vehicle inventory itself.

The quarter also saw the start of deliveries for a few new models, including the Mercedes-Benz CLA, the MG Majestor and the new Renault Duster. The company said supply of BYD vehicles, which had been a constraint earlier, improved through the quarter and is expected to get better in the current one too.

Looking further out, Landmark Cars said fresh launches from Mercedes-Benz, BYD, MG, Mahindra & Mahindra, Honda and Kia are lined up over the coming quarters, which it expects will keep sales momentum going.

By the end of the trading session, the stock settled at Rs 496.40, up 17.38% for the day, marking a six month high for the counter.

The scrip remains well below its 52 week high of Rs 662.80 hit in September last year, but the sharp bounce this week adds to a recovery that has been building since June.

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