Lumax Auto Technologies is in the news on the back of a few recent joint ventures -- one is a tie-up with a Spanish company and another with an Israeli company. Both JVs will be supplying components to the Indian auto industry.
Explaining the JV structures, Deepak Jain, Promoter Director of the company said the JV with the Israeli company Ituran Location and Control Ltd for the telematics space, structure is at 50:50. The other JV is with Spanish company Francisco Albero SAU for the oxygen sensors for the two wheelers for BS-VI coming in by April 2020. In this JV, Lumax will contributing 51 percent and the Spanish company at 49 percent.
For the both the cases, Lumax will be contributing equity based on the proportionate joint venture.
Explaining the reasons for the muted performance by the company in first quarter, he said it was due to massive de-stocking on account of goods and services tax (GST) that led to reduction in volumes.
However, going forward there is revival seen in the aftermarket, August sales are almost 30 percent up compared to the average Q1 sales. Moreover, the passenger car segment is still doing strong, it contributes about 30 percent to revenues.
Also I expect a strong growth from the market leader Lumax Mannoh the gear shift division, said Jain.
FY18 revenue growth is expected to be in single-digits but expect margin expansion of 150 basis points.
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