Expect 16% growth over next few years: Lumax Auto

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26 Aug, 2025 12:21

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Anmol Jain, managing director, Lumax Auto Technologies says the company’s Q3 is likely to be subdued as compared to the Q2.

In an interview to CNBC-TV18, Jain says the two-wheeler segment sales are driving growth and he expects margins to improve hereon.

A: We have seen a 21 percent rise in our topline. Going forward, Q3 should be a little subdued compared to the first two quarters mainly because of the number of working days, there are December shut down which are usually there in annual maintenance. However Q4 should be a much stronger growth compared to the initial quarters. So, we do envisage that for the whole year we should be looking at a similar growth rate as we have done in our first half as well.

In terms of pockets two-wheeler clearly is driving the growth where first half also had a robust numbers of about 18 percent growth. Clearly since our product portfolio and customer portfolio is quite diverse spread across different segments we are pretty secure in terms of having a top line growth of 20-21 percent which we should be envisaging for the year.

A: Hereon, we have a pretty robust plan in place. Number one the margins will get better because of higher off tick from the recent investments which were made by the company in the last two years. Obviously deeper penetration in our new product lines as well. Some of the product lines we entered in to were as recent as only about 12 to 24 months old so deeper penetration in to getting better realisation on those products.

As well as lot of technology play will come into action in the next possibly two to three quarters for example we will be getting in to the automotive mission plan (AMP) manufacturing for our gear shift lever product. Currently, we are mostly a manual transmission market and manual transmission leader but as the markets also shift its focus towards AMP as a well accepted technology we see better realisation going forward as well.

A: I would not be able to give you a number exactly but surely we will be aiming at better margins in Q3 and Q4 compared to what we have done in the first half of the fiscal.

A: Maruti Suzuki leads this in terms of the technology drive being the first in the markets to introduce this technology. However all the other original equipment manufacturer (OEMs) are also actively discussing with us to get certain model in the future towards this technology of AMP and we being the leader in this product line in India currently would definitely be the first to locally develop and manufacture this technology.

A: All of them which you had mentioned be it Mahindra be it Tata are already in the process of launching few models of theirs with this AMP transmission. However going forward I see almost all OEMs will have a sizeable slice of their share coming from the AMP.Reema: Lumax Industries has underperformed its other sister concern Lumax Auto Technology by quite a margin in calendar year 2014. So Lumax Auto Tech is seen a rally of 150 percent this year while Lumax Industries which is into manufacturing of automotive lighting has only seen a rally of close to about 20 percent. You had earlier guided for just about a 10 percent growth in your revenues for Lumax Industries. Do you hold on to that guidance and any particular reason why you are not able to scale up the top line growth for Lumax Industries at a time when a growth is so strong or demand is so good?

A: There are couple of reasons; number one if you look at the base effect Lumax Industries Limited (LIL) is already at a very high base. Also Lumax industry focus on a limited product line being automotive lighting compared to Lumax technology which is in to multiple product line. Going forward however I do feel that Lumax industries will also have a significant growth coming in. If you see our last five years compound annual growth rate (CAGR) we have been averaging about 16 percent CAGR for Lumax industries. Going forward I personally feel that we should be able to hit the similar number if not more.

Mainly again the growth drivers will be better asset utilisation with economic recovery in the automotive industry as well. We invested significantly in the Lumax industries in the last three years over to the tune of Rs 200-225 crore mainly in the new capacity creation in our facilities and for our customers. However we the off take just starting to pick up we will see better utilisation of assets also we are focusing aggressively on new markets for exports and certain sweet spots which would give us huge growth for example the agro sector being one of them and we do feel that in the next two to three years we should be running at almost full capacity and possibly getting into another new sites which should be commissioned as early as 2016 and 2017.

A: Currently our capex for this year is focused on R&D. We do have approximately about Rs 25 crore of capex which we are looking at. Not significant considering the size of the company. However we have already done about close to Rs 20 crore in the first half and we would see another Rs 10 crore or so in the second half. Mainly focusing on R&D just trying to enhance our engineering capabilities so that we can better engage and better service our customers.