India’s Landmark Cars posts about 21% rise in Q2 profit on lower costs

BENGALURU (Reuters) – Indian luxury auto dealer Landmark Cars reported a 20.55% rise in quarterly profit, helped by lower expenses even as demand slowed.

Consolidated net profit rose to 201.6 million rupees ($2.42 million) for the quarter ended Sept. 30 from 167.2 million rupees a year earlier.

The auto reseller, which was listed last December, said total expenses fell nearly 9% to 7.55 billion rupees. A fall in the purchase of cars and spares, which constitute the bulk of costs, pushed expenses down.

The decline in costs outpaced revenue from operations, which fell 9.6% to 7.71 billion rupees.

The company’s vehicle sales fell 7.8% in the second quarter.

Last month the Mercedes-Benz and Jeep dealer had flagged a marginal decline in the business in the reported quarter due to supply chain constraints.

The company expects better supply of vehicles across original equipment manufacturers in the second half of the current fiscal year.

Shares of Landmark Cars rose 2.8% ahead of the results, bumping the year-to-date gains to about 52%.

($1 = 83.2650 Indian rupees)

(Reporting by Meenakshi Maidas and Yagnoseni Das in Bengaluru; editing by Eileen Soreng)