Auto Parts & Equipment company Varroc Engineering announced Q1FY26 results Q1FY26 Revenue at Rs 20,276 million compared to Rs 18,989 million during Q1FY25, change 6.8% YoY, with India Operations registering a 7.2% growth EBITDA at 9.5% vs 9.1% on YoY basis. Q1FY26 PBT (before exceptional and JV profits) at 4.1% vs 2.8% in Q1FY25. Net new annual peak revenue from order wins in Q1FY26 of Rs 2,905 million. Revenue from supplying to EV customers in Q1FY26 was around 11.0% of revenue. Filed more than 10 patents in Q1FY26, taking the total filing to more than 130+. Net debt reduced by Rs 3,002 million in Q1FY26 and was at Rs 4,478 million. Result PDF
Auto Parts & Equipment company Varroc Engineering announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue from Operations increased by 6.3%, from Rs 19,749 million to Rs 20,992 million. EBITDA decreased by 2.4%, from Rs 2,187 million to Rs 2,134 million. EBITDA Margin declined by 90 bps, from 11.1% to 10.2%. PBT before JV & Exceptional Items rose by 3.6%, from Rs 998 million to Rs 1,034 million. Share of Profit of JV decreased from Rs 51 million to Rs 3 million. PBT declined by 55%, from Rs 1,050 million to Rs 473 million. FY25 Financial Highlights: Revenue from Operations increased by 8%, from Rs 75,519 million to Rs 81,541 million. EBITDA increased by 2.3%, from Rs 7,590 million to Rs 7,767 million. EBITDA Margin fell by 60 bps, from 10.1% to 9.5%. PBT before JV & Exceptional Items rose by 15.7%, from Rs 2,705 million to Rs 3,129 million. Share of Profit of JV declined sharply by 91.7%, from Rs 444 million to Rs 37 million. PBT decreased by 46.2%, from Rs 3,149 million to Rs 1,693 million. The Board of Directors have recommended dividend of 100% of Face value i.e. Rs 1 Tarang Jain, CMD commented, “India has now become the 4th largest economy and the GDP had a steady growth of 6.2% in Q3FY25. Softening of Inflation in last few quarters and interest rates reduction globally encouraged our Central Bank to reduce Repo rate by 50 basis points. Weak growth in consumption, on top of global & regional conflicts and uncertain tariff regime, may impact discretionary spending which can have impact on Automotive Industry. However, we remain confident about the medium to long-term growth prospects of automotive industry. During Q4 of FY25, all the segments registered moderate growth on YoY basis : - 2W grew by 5.8%, PV grew by 5.2%, CV grew by 3.1% & 3W grew by 9.5%, On QoQ basis also, almost all segments, other than 2W, reported strong growth as normally Q4 is a strong quarter for India automotive industry every year. 2W de-grew by 1.2%, 3W grew by 3.0%, PV grew by 20.4%, and only CV grew by 20.9% Before discussing the operational performance of the Company, I would like to highlight a few other aspects which will help the Company to become more sustainable and enable value enhancement for the stakeholders : In FY25, we filed 25 patents and were granted more than 10+ patents. Thus, the total filings made now add up to more than 120 for the Company, which will further strengthen the intellectual property of the Company and help in developing technologically advanced products at an affordable cost. Secondly, we also completed the sale of our stake in the China JV and realised the net proceeds of RMB 290 million during May 2025. Thirdly, our sourcing of electricity from Renewable Energy has been increasing throughout FY25 and was around 31% for FY 25 as against 13% last year. For the month of March’25, it reached around 45%. We are also working on commencement of phase-2 of renewable energy project which will further improve this to > 50% in the coming year. These initiatives will boost our ESG credentials, besides giving us savings in electricity cost. Now coming to the operational performance, during Q4FY25, the Company registered consolidated revenue of Rs 21 bn with a growth of 11% YoY on like-to-like basis, with India operations growing at 13%. Our EBITDA for the quarter was around 10.2% on back of improvement in the gross margin and benefits of operating leverage. Our PBT before exceptional items and JV profits was over Rs 1 billion or 4.9% of revenue in Q4FY25. As you all know, we have been working on structural changes like merger of VEL and VPL and exiting from China JV. We had to recognize certain one-time exceptional items primarily relating to these initiatives, which will simplify our operations and also improve our financial performance going forward. We continue to strengthen our balance sheet and return ratios. The net debt of the company in FY25 reduced by 2,348 million and as a result the net debt to equity reduced to below 0.5x at the end FY25 from 0.64X at the end of FY24. The absolute net debt figure was at 7,480 million. ROCE (before tax) for FY25 was 20.8% and free cash flow generation was also healthy at Rs 3116 millions or 3.8% of revenue before growth capex in land. In FY25, we also achieved net new business wins with annualized peak revenues of Rs 11,734 million, with EV models constituting more than 55% of this. It is more heartening to see business wins in our overseas operations also, which will improve profitability from FY 27 onwards. Our continuing focus on revenue growth, improvement in gross margin, control on fixed cost and optimization of capex and working capital will enable us to generate healthy free cash flows in the future also.” Result PDF
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
Auto Parts & Equipment company Varroc Engineering announced Q2FY25 results Consolidated revenue from operations was Rs 20,808 million in Q2FY25. PBT Margin for Q2FY25 came at 4.4% higher by 50 basis point YoY and 150 basis point on QoQ. Net Debt reduces by 1,554 million in first half and Net Debt/Equity improves to 0.50 in H1FY25. Management Commentary: “The India GDP growth for Q1 of FY 25 was 6.7%. This was lower than the earlier projections given by RBI and lower than the growth levels of the previous few quarters. While urban consumption is down, rural consumption has been improving during the FY which is also reflected in good growth seen in 2W industry. In Q2FY25 on YoY basis 2W grew by 12.5%, 3W grew by 6.3%, PV de-grew by 0.7%, CV de-grew by 13.3%. However, on QoQ basis, we saw growth in almost all segments other than CV, primarily due to the early festive season. 2W grew by 6.8%, 3W grew by 29.3%, PV grew by 5.7%, CV de-grew by 5.2% Destocking by dealers before Euro 5+ and lack of growth driven by lower consumption is impacting the European and American 2 Wheeler market. In the Asean region, the growth was largely driven by low-end segments and the premium segment continues to struggle for growth in this region. During Q2FY25, the Company registered revenue of Rs.20,808 million with a growth of 10.3% YoY. The Indian business reported a growth of 13.4%. The PBT of the company was at 4.4% for Q2FY25 due to positive operating leverage seen in India operations. The consolidated profitability remains impacted by degrowth in overseas businesses, R&D; spending in overseas operations for future growth. On QoQ, the Company reported improvement all around. The Revenue on QoQ grew by 9.6%, EBITDA margin improved by 60 basis point and PBT margin by 150 basis point. The Company balance sheet continues to strengthen along with improvement in return ratios. The net debt of the company in H1FY25 reduced by 1,554 million and net debt to equity have reduced to 0.50X at the end of H1 FY25 from 0.64X at the end of FY24. The absolute net debt figure is 8,273 million. Annualized ROCE at the end of H1FY25 is 19.0%. The capex spent in H1FY25 was 1,030 million. The capex spending in H2FY25 will increase driven by need for additional SMT lines and increased EV capacity. We are also investing in land in southern & western part of India for future growth. As indicated earlier, we are working on various initiatives to drive cost reductions across several categories of cost with special focus on fixed cost. Some of these measures have already started showing impact on our bottom-line but most of them will fully get reflected by Q4 FY25. We have also rationalized headcount levels across businesses and functions. We continue to look at avenues to make the organization more lean, nimble & agile and to increase speed in decision making. The orderbook for H1FY25 continues to remain healthy and we continue to build the orderbook in both India and overseas business. In H1FY25, we have achieved net new business wins with annualized peak revenues of Rs.6,046 million. The orderbook from EV models constitutes more than 37% of these wins. In the first half we added various new-age technological advanced product portfolio in our business. We started the production of Integrated starter generator and soft-touch door panels whereas we won business for Battery management system for electric vehicles thus further increasing our content in electric vehicles. We also won business for Interior ambient lighting from a global player which helps in increasing our offering for 4- wheeler vehicles. We will continue to innovate by further strengthening our engineering capabilities, streamlining our operations through further cost reductions and working capital optimization. Our endeavor will remain to expand our presence through focused products to drive sustainable growth and deliver value to our shareholders. Beyond business, we continue to focus on various ESG aspects to make the organization more sustainable. We have published our first sustainability report which can be accessed on our website. Our efforts towards giving back to society is being also recognized. The Kham River Restoration was recognized by the WRI Ross Center for Sustainable Cities, as one of the top five finalists globally for their prestigious award. The project also received globally recognized prestigious award i.e. The St Andrews Prize for the Environment.” Result PDF