💰 Financial Performance

Revenue Growth by Segment

The company operates in two segments: Showroom (vehicle sales) and Service & Spares. Total operating income reached INR 2,139 crore in fiscal 2025, representing a muted volumetric growth of 2% due to an auto sector slowdown. However, the company achieved a 20% CAGR over the three fiscals ending 2025. Revenue for fiscal 2026 is projected to grow to INR 2,300-2,400 crore, driven by a 6-7% expected volumetric growth from new showrooms.

Geographic Revenue Split

Operations are concentrated in North India, with 43 showrooms and workshops across Delhi, Haryana, Himachal Pradesh, Uttar Pradesh (Noida), and Jammu & Kashmir. While specific percentage splits per region are not disclosed, the expansion into Noida and Kashmir is expected to drive 15-20% revenue growth in the upcoming cycles.

Profitability Margins

Net Profit Margin declined by 18.46% YoY, falling from 1.30% in FY2024 to 1.06% in FY2025. Operating Profit Margin remained relatively stable but saw a slight 2.04% decline from 2.94% to 2.88% in the same period. Historical margins were higher at 4-4.5% in FY2021-22, but have compressed due to higher discounts and the absence of extra sales incentives from the principal supplier.

EBITDA Margin

Operating Profit Margin was 2.88% in FY2025, down from 2.94% in FY2024. This core profitability is under pressure due to rising dealership operation costs, increased labor wages, and higher selling/distribution costs necessitated by intense market competition.

Capital Expenditure

The company has no major debt-funded capital expenditure (capex) proposed over the medium term. Recent expansions into Noida and Kashmir showrooms were the primary focus, and future growth is expected to be funded through internal accruals and existing reserves.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook from CRISIL. Interest Coverage Ratio stood at 2.03 times in FY2025, a 24.81% decrease from 2.70 times in FY2024. Net cash accrual to adjusted debt (NCAAD) is expected at 0.2-0.3 times, with bank limit utilization averaging 77.84% through May 2025.

⚙️ Operational Drivers

Raw Materials

As an automobile dealer, the primary 'raw material' is the finished vehicle inventory, which accounts for the bulk of the cost of goods sold. Other costs include spare parts and workshop consumables.

Import Sources

Vehicles and spare parts are sourced domestically from the principal manufacturer's plants in India, primarily located in Haryana.

Key Suppliers

Maruti Suzuki India Limited (MSIL) is the sole principal supplier for vehicles and genuine spare parts.

Capacity Expansion

The company currently operates 43 showrooms and workshops. Expansion is focused on geographic reach rather than manufacturing capacity, with new showrooms recently operationalized in Noida and Kashmir to increase the scale of operations.

Raw Material Costs

Inventory costs are the primary driver. Inventory turnover ratio decreased by 22.87% from 12.75 times to 9.85 times in FY2025, indicating an increase in inventory holding periods which raises carrying costs.

Manufacturing Efficiency

As a trading entity, efficiency is measured by turnover. Debtors turnover ratio fell 32.02% from 39.31 times to 26.72 times in FY2025, reflecting a stretch in the operating cycle.

Logistics & Distribution

Increasing level of competition in the automotive market has translated into higher selling and distribution costs to maintain market share.

📈 Strategic Growth

Expected Growth Rate

6-7%

Growth Strategy

Growth will be achieved through volumetric increases from newly launched showrooms in Noida and Kashmir, alongside an increase in revenue from ancillary services and workshops. The company aims to leverage its 30-year relationship with MSIL to capture demand in the Arena and Nexa segments.

Products & Services

Maruti Suzuki passenger vehicles (Arena and Nexa brands), automotive servicing, and sale of genuine spare parts.

Brand Portfolio

Competent Automobiles, Maruti Suzuki Arena, Maruti Suzuki Nexa.

New Products/Services

The company relies on MSIL for new product launches; recent volumetric growth is supported by new models introduced by MSIL in the SUV and Nexa segments.

Market Expansion

Targeting the Jammu & Kashmir and Uttar Pradesh regions with new showroom launches to mitigate non-exclusivity risks in Delhi.

Market Share & Ranking

The company is a leading dealer for MSIL in North India, maintaining an established market position for over three decades.

Strategic Alliances

Exclusive dealership agreement with Maruti Suzuki India Limited (MSIL).

🌍 External Factors

Industry Trends

The Indian automotive market is seeing increased competition from new entrants and a shift toward SUVs. The industry is evolving with higher digital integration for sales, and the company is adopting online accounting and audit trail facilities to match regulatory shifts.

Competitive Landscape

Intense competition from other MSIL dealers (non-exclusivity in Delhi) and dealers of other OEMs like Hyundai, Tata Motors, and Mahindra.

Competitive Moat

The company's moat is its 30+ year relationship with MSIL and its extensive network of 43 outlets. This provides a significant barrier to entry in its specific territories, though it is challenged by MSIL's policy of appointing multiple dealers in the same region.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and liquidity conditions which affect consumer financing for vehicle purchases.

Consumer Behavior

Shift toward higher-end models (Nexa segment) and increased demand for professional after-sales servicing.

Geopolitical Risks

Limited direct impact, though global supply chain issues affecting MSIL's production (e.g., semiconductor shortages) indirectly affect the company's inventory levels.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013, Motor Vehicles Act, and various labor laws. The company has implemented audit trail (edit log) facilities in its accounting software (Real books-online) as per recent regulatory mandates.

Environmental Compliance

The company operates workshops that must comply with local environmental and pollution control board norms for waste disposal and emissions.

Taxation Policy Impact

The company complies with standard Indian corporate tax rates; specific effective tax rate % was not disclosed.

Legal Contingencies

The Secretarial Audit report for FY2025 indicated no specific events or actions having a major bearing on the company's affairs, and the company is in compliance with SEBI LODR Regulations.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 100% dependency on MSIL's performance and product pipeline. A decline in MSIL's market share would have a direct negative impact on CACL's revenue.

Geographic Concentration Risk

High concentration in North India (Delhi, Haryana, HP), making it vulnerable to regional economic downturns or regulatory changes in those specific states.

Third Party Dependencies

100% of vehicle inventory is sourced from a single supplier, Maruti Suzuki India Limited.

Technology Obsolescence Risk

Risk of shift toward Electric Vehicles (EVs) if the principal supplier lags in the EV transition, though MSIL is currently the market leader in the passenger vehicle segment.

Credit & Counterparty Risk

Receivables management is critical; Debtors turnover slowed by 32.02% in FY2025, indicating potential pressure on credit collections.