Landmark Cars plans cost optimization with co-location of select outlets

Landmark Cars Limited (BSE: 543714 & NSE: LANDMARK), one of the leading premium automotive retail businesses in India, plans to share certain facilities between brands to optimise costs, aligning with its strategy:

- Renault Nerul (Navi Mumbai) workshop will share space with the existing Jeep workshop at Turbhe, MIDC

- Renault Vashi showroom will share space with the existing Jeep Showroom at Navi Mumbai

Further, the company is shutting down its Renault Juhu showroom in Mumbai, along with the closure of above workshop and showroom at Nerul and Vashi respectively.

The locations being co-located and shut down have already been depreciated, resulting in a very small write off. This co-location will reduce the operating costs for both the brands.

Commenting on this development Mr. Sanjay Thakker, Promoter and Chairman, Landmark Cars Limited said, "Landmark Cars is committed to maintaining healthy unit economics across brands. To achieve this, we periodically evaluate the performance and potential of each of our brands and locations and make informed decisions. Our focus has been on rationalizing the cost base by sharing infrastructure and rightsizing our outlets."

Shares of Landmark Cars Limited was last trading in BSE at Rs. 720.15 as compared to the previous close of Rs. 678.40. The total number of shares traded during the day was 5436 in over 579 trades.

The stock hit an intraday high of Rs. 722.45 and intraday low of 680.05. The net turnover during the day was Rs. 3834187.00.

Source : Equity Bulls

Keywords

LandmarkCars INE559R01029 AutoDealer CoLocation CostOptimization