Lumax Auto Tech.

Lumax Auto Technologies reported its highest-ever single-quarter revenue in Q2 FY25, reaching INR842 crores, a 20% year-on-year increase from INR700 crores in Q2 FY24. The first half of FY25 also demonstrated robust growth, with revenue at INR1,598 crores, up 20% from INR1,332 crores in H1 FY24. The EBITDA margin for both Q2 and H1 stood at 14%, with absolute EBITDA growing 18% to INR118 crores in Q2 and 19% to INR223 crores in H1. PAT before minority interest for Q2 FY25 saw a significant 38% increase to INR52 crores, compared to INR38 crores in Q2 FY24.

The Advanced Plastics segment was a major contributor, growing 17% to INR907 crores in H1 FY25, with an order book of INR650 crores. The Mechatronics domain exhibited strong growth of 76% to INR46 crores in H1 FY25, securing an order book of INR175 crores. Structures and Control Systems also grew 11% to INR338 crores in H1 FY25, with an order book of INR225 crores. The total order book across all product and domain categories is INR1,050 crores, of which 90% represents new business and approximately 40% is attributed to EV models.

Lumax is focused on several strategic priorities, including increasing content per vehicle, introducing new EV-agnostic product categories through joint ventures and acquisitions, and maintaining its position as a trusted single-source partner for major OEMs. The company is significantly enhancing its R&D capabilities, with a focus on technologies such as ADAS, electronics integration, HMIs, and software. This strategic alignment aims to meet evolving OEM demands and drive sustainable growth in the coming years.

IAC India reported a 29% revenue growth in Q2 FY25, which included INR35 crores from tooling revenue. Manufacturing revenue for Q2 grew 15-16%, and for H1, it grew 17%. The EBITDA margin for Q2 was 16.5%, a 150 basis point decrease year-on-year, primarily due to one-time^📎 adjustments and price corrections. Management expects to maintain EBITDA margins between 16-18% in H2 and has initiated brownfield expansions in Pune and Nashik, anticipating capacity utilization to remain around 85% post-investments. The passenger vehicle segment's share in H1 FY25 increased to 50% from 47% in FY24.

The acquisition of GreenFuel Energy Solutions is progressing as planned, with consolidation revenues expected to begin in Q3 FY25. GreenFuel is projected to achieve an annualized revenue of INR300-350 crores for FY26, with stronger EBITDA margins than current subsidiaries. Lumax is highly bullish on the alternate fuels market, including CNG, LNG, and hydrogen, and is strategically aligning its direction into this segment. This move is seen as a significant growth driver for both passenger and commercial vehicle spaces, with the company not actively pursuing EV-specific component opportunities at present.

Lumax Alps Alpine, after flat H1 FY25 revenue of INR15 crores, is projected to double its H2 revenue year-on-year, targeting INR50 crores for the full FY25 and aiming to cross INR100 crores in FY26, driven by throttle position sensors and 2-wheeler infotainment systems. Lumax JOPP, despite a low H1 revenue of INR7 crores (up 70%), expects to double its full-year revenue to INR12-15 crores, with significant shift tower business from Maruti Suzuki commencing in FY27. FAE is set to begin supplying oxygen sensors to a major 2-wheeler manufacturer in January 2025, anticipating almost 0.5 million sensors in FY26 and 40% plant capacity utilization.

As of September 30, 2024, Lumax Auto Technologies reported a healthy free cash balance of INR387 crores, which is more than its long-term debt of INR363 crores. The Capex outlay for H1 FY25 was INR32 crores, with the full-year Capex estimated to be between INR120-140 crores. This Capex is expected to generate approximately INR400 crores of additional revenues in FY25, indicating a Capex to additional revenue ratio of 1:7. The company plans to fund future growth and inorganic opportunities through a mix of strong internal cash generation and potentially fresh debt.