Auto parts & equipment company Varroc Engineering announced Q1FY24 results: Consolidated revenue from operations was Rs 17,925 million in Q1FY24, registering a growth of 10.0% on a YoY basis Consolidated EBITDA margins in Q1FY24 were at 10.0%, improved by 180 bps YoY and 50 bps QoQ PAT from continued operations was positive at Rs 550 million in Q1FY24 as against the loss reported in Q1FY23. Tarang Jain, CMD commented, “Speaking about the global economy, it has been more resilient despite monetary tightening by most of the central banks as core inflation remains above the target levels. Despite the turmoil in the financial markets, we see a strong labor market and consumption in developed economies. The Indian economy on the other hand has sustained its growth momentum in FY24 so far. Core inflation has started to moderate which is helping RBI not to increase the interest rate further thus supporting the economy. In terms of our operations in Q1FY24, we continued our journey of improving performance. Our revenue from operations grew by 10.0% on a YoY basis to Rs 17,924 million. Our EBITDA margin was at 10.0% in the quarter and it improved on YoY basis by 180 bps due to improvement in Indian and overseas operations and certain incentives from Govt. Sequentially also the EBITDA margin has gone up by 50 bps. The reported PBT for the quarter was Rs 652 million which includes profit from our joint venture of Rs 61.3 million. The ongoing monsoon and festive season will be key to watch out for the Automobile sector to continue its momentum. The reduction in fame II subsidy from June 1, 2023, for EV vehicles impacted EV volumes sharply but we are cautiously optimistic about the recovery in volumes in the coming months. Our focus will remain to strengthen our competitiveness in India and globally by developing world-class products and services. We will enhance and leverage our global footprint as we are a global company with strong roots in India. During the current financial year, our businesses will continue to deliver growth and returns while maintaining strong fiscal discipline.” Result PDF
Auto Parts & Equipment company Varroc Engineering announced Q4FY23 & FY23 results: Consolidated Q4FY23: Revenue from operations was Rs 16,901 million in Q4FY23, registering a growth of 2.3% on a YoY basis EBITDA margins in Q4FY23 were at 9.5%, improved by 340 bps YoY and 170 bps QoQ PAT was positive at Rs 400 million in Q4FY23 as against loss reported last year. Consolidated FY23: Revenue from continued operations was Rs 68,631 million in FY23, registering a growth of 17.4% YoY EBITDA margins for continued operations for FY23 were at 8.7%, improved by 210 bps YoY PAT for continued operations was positive at Rs 388 million in FY23 as against the loss reported during FY22 Lifetime New Order wins in India: Rs 51.78 billion for FY23 Tarang Jain, CMD commented, “Automobile production in India during Q4FY23 grew on YoY basis for most of the segments, due to easing of semiconductor issues and improved economic activity. However, the industry segment from which we generate around 70% of revenue i.e. 2W, saw a de-growth of -3% as exports are impacted by geo-political issues and domestic demand was impacted due to lower consumption in rural areas. Our consolidated revenue from operations grew by 2.6% on a YoY basis to Rs 17,011 million during Q4 and by 17.4% during a full year. Our EBITDA margin was at 9.5% and it improved on YoY basis by 340 bps due to business mix, recovery, and operating leverage. Sequentially also the EBITDA margin has gone up by 170 basis. The reported PBT for the quarter was Rs 411 million. The early signs of increase in rural consumption and strong domestic economy are expected to augur well for a good FY24. In India, we continue to have strong order wins for new business in FY23 across business units. During FY23, lifetime revenue from new order wins is Rs 51,782 million. Out of this, business wins from 7 prominent EV customers is Rs.17,968 million. The order books also reflect our effort to diversify as we see nearly 56% of lifetime order win from 4W and 44% from 2&3 wheeler. Our strong R&D; capabilities helped us in filing 15 patents in FY23 from the group, besides enabling us to commercialize new products in this financial year. During the current financial year, our businesses will continue their focus on profitability improvement, FCF generation, prudent capital deployment and debt reduction. We also got 'Ind A+' with stable outlook rating from India Ratings.” Result PDF
Auto parts & equipment firm Varroc Engineering announced Q3FY23 results: Consolidated Q3FY23 & 9MFY23: Revenue from operations was Rs 17,228 million in Q3FY23, registering a growth of 15.3% on a YoY basis EBITDA margin was at 7.8%, improved by 140 bps YoY PAT was positive at Rs 218 million, as against the loss reported during the same quarter last year. Lifetime new order wins in India: Rs 35.65 billion for 9MFY23, including Rs 8.92 billion from EV manufacturers Tarang Jain, CMD, commented, “In India, automobile production for all the segments grew on a YoY basis due to the easing of semiconductor issues and improved economic activity. However, 2W saw tepid growth as the lower end of the segment has not picked up and exports were impacted by geo-political issues. YoY, 2W production grew only by merely 0.5%, 3W by 13.3%, PV by 21.4%, and CV by 12.0% on YoY basis. On a QoQ basis, the production for all the segments fell because of the early festive season and the reduction of inventory at the channel partners. In terms of our operations, revenue from operations grew by 15.3% to Rs 17,228 million on a YoY basis. Our EBITDA margin was at 7.8% and it improved on YoY basis by 140 bps due to improvement in overseas performance. Sequentially, the EBITDA margin has fallen due to lower revenue from operations. The reported PAT for the quarter was Rs 218 million. We continue to have strong order wins for new business in 9MFY23 across business units enabling our future growth in India. During 9MFY23, lifetime revenue from new order wins is Rs 35,653 million. Out of this, business wins from 5 prominent EV customers is Rs 8,917 million. The order books also reflect our effort to diversify as we see nearly 48% of lifetime orders win from 4W and 52% from 2&3 wheeler. Diversification can also be seen in the order book from the customer perspective with only 19% from the largest customer. As stated previously, profitable business wins, improving contribution margin, sweating of assets, net working capital improvement, commercialization of our R&D; efforts, control on costs, growing free cash flow, debt reduction, and prudent capital allocation remain the focus of the company.” Result PDF