Auto Parts & Equipment company Varroc Engineering announced Q3FY25 results Consolidated revenue from operations was Rs 20,753 million in Q3FY25. PBT Margin for continued operations before exceptional and JV profit for Q3FY25 came at 3.2%. Strong order book especially in overseas operations to improve the operating leverage from FY27. Tarang Jain, Varroc Engineering, CMD, said: “The Indian GDP has slowed down little as compare to last year but still remain strong as compared to modest global growth. The rural consumption has remained strong in past few quarters. The income tax cut by the Govt in the budget and interest rate reduction by the central bank augurs well for India, as it will help in further improving the consumption of the discretionary goods like automobiles. during Q3FY25, the Company registered revenue of Rs20,753 million with a growth of 10.1% YoY. Various new programs which we won in the past period moved to production during the quarter. Thus, the tooling sales in this quarter was much higher. On the other hand, higher tooling cost had a one-time impact on our gross margins. Despite that our EBITDA on YoY basis remained same at 9.2% whereas on QoQ it fell by 50 basis point. Our PBT before exceptional item and JV has improved by 80 basis point on YoY mainly due to control on Capex and generation of free cash flow which is resulting in lower depreciation and interest cost. On QoQ, the PBT has fallen which is adversely impacted by forex translation losses. The Company balance sheet continues to strengthen along with improvement in return ratios. The net debt of the company in 9M FY25 reduced by 1,967 million and net debt to equity reduced to 0.50X at the end of 9MFY25 from 0.64X at the end of FY24. The absolute net debt figure was 7,860 million. Annualized ROCE at the end of 9MFY25 was 19.3%. The orderbook for 9MFY25 has further strengthened and we continue to build the orderbook in both India and overseas business. In 9MFY25, we have achieved net new business wins with annualized peak revenues of Rs10,847 million. The orderbook from EV models constitutes more than 55% of these wins. It is more heartening to see business win in our overseas operations. We have two big business win for our overseas operations. First one is Front Drive & Rear Drive Inverter Electronics for Electric Passenger Vehicle. The second one is Interior ambient lighting. The start of production will take place from FY27. These wins are testament to our dedication to excellence and showcase our advanced electronics manufacturing capabilities. In Indian operation the order book which is worth mentioning is the win for power electronics i.e. Traction Motor and Controller for 3W player. The SOP of this will also happen in next CY. Our endeavor will remain to expand our presence through focused products to drive sustainable growth, improve the gross margin, keep control on fixed cost and optimize the working capital. All of this will help us to deliver value to our shareholders.” Result PDF