Auto parts & equipment firm Varroc Engineering announced Q2FY23 results: Q2FY23: Consolidated revenue in Q2 FY23 from continuing operations increased by 21.2% on YoY basis and came in at Rs 18,341 million Consolidated EBITDA margins at 9.2% improved by 100 bps YoY as well as QoQ for continuing operations Operational PBT before JV profit/(loss) for continuing operations came in at Rs 545 million in Q2FY23 and grew by 95% YoY and 294% QoQ Lifetime new order wins in India: Rs 25.5 billion for H1FY23, including Rs 8.7 billion from EV players Varroc Engineering Ltd (Varroc), a global tier-I auto components group, today announced its results for the quarter ended Sep 30, 2022. Tarang Jain, CMD, commented, “In India, automobile production for all the segments in Q2FY23 grew on YoY basis as well as on QoQ basis. The main reasons are due to the lower base of last year and early festive season. On YoY basis, 2-wheeler production grew by 7.7%, 3W by 24.3%, PV by 38.1% and CV by 36.2%. In terms of our operations, we are happy to inform that we grew revenue from continued operations by 21.2% to Rs.18,399 million on YoY basis. This is the highest ever revenue generated by our entities in the Continued operations in any quarter. We improved our profitability on a sequential basis with an improvement in EBITDA margina by 100 basis points. This is the second consecutive quarter when EBITDA margins expanded, and it came in at 9.2%. The operational PBT before JV profit for continued operation has also improved sequentially by more than 294% in the quarter and it is Rs. 545 million. The reported PBT of Rs. 307 million was impacted negatively by net mark-to-market forex impact of Rs 242 million mainly on intercompany loans. We continue to have strong order wins for new business in H1FY23 across business units enabling our future growth. During H1FY23, lifetime revenue from new order wins is Rs 25,476 million. Out of this, business wins from 5 prominent EV customers is Rs 8,676 million. Profitable business wins, improving the contribution margin, focusing on PBT instead of EBITDA margins, sweating of assets, inventory reduction, commercialisation 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
Auto Parts & Equipment firm Varroc Engineering announced Q1FY23 Result : Varroc Engineering reports improved financial results in Q1 FY23 from Continuing Operations, driven by better margins and stronger growth Consolidated Revenue in Q1 FY23 from Continuing Operations increased by 36.3% on YoY basis and came in at Rs 16,352 million Consolidated EBITDA margins improved by 240 bps YoY for Continuing Operations to 8.2%. Operational PBT before JV Results for Continuing Operations turned positive and came in at Rs 138.3 million in Q1 FY23 as against negative (Rs 181.8) million in Q1 FY22 Lifetime New Order wins in India: Rs 14.7 billion for Q1 FY23, including Rs 4.8 billion from EV players Result PDF
Auto Parts & Equipment firm Varroc Engineering declares Q4FY22 result: Consolidated Revenue in Q4 FY22 from Continued Operations improved 11.0% on QoQ basis Consolidated EBITDA margins improved by 150 bps QoQ for Continued Operations. SPA signed in April’22 with Plastic Omnium to divest the 4W Lighting Business in Europe & America for Enterprise Value of Euro 600 Million Application for Production Linked Incentive (PLI) scheme approved by the Government; target investment of approx. Rs.2800 Million over 5 Years Lifetime New Order wins in India: Rs 35.1 billion for the Full Year and which consist of Rs 10.4 billion from EV players Mr. Tarang Jain, CMD, Varroc Engineering Ltd. commented, “In India, the auto production for 2 wheelers in FY22 fell by 3.5% despite lower base of last year due to weak rural demand and higher cost of ownership. Passenger vehicle in India rose by 19.2% due to preference for personal mobility. Commercial Vehicle and 3 Wheeler also witnessed growth due to lower base and overall economic recovery. Under this backdrop, the Revenue from continued operations for FY22 has grown by 33.6% to Rs.58,442 million as against Rs.43,739 million in FY21, outperforming the industry production numbers. The EBITDA margin for FY22 was 6.1% as against 7.7% in FY21 for the continued operations. The margins were impacted by higher commodity prices, forex losses on intercompany loans and lower operating utilization is some of the geographies. The Revenue for Q4 FY22 for continued operations came at Rs.16,520 million which increased 11.0% QoQ and 9.8% Y-o-Y again outperforming the Industry production numbers. The EBITDA margin improved on QoQ basis by 150 basis point and came at 6.5%. The Margins for the quarter are still impacted by higher raw material prices The focus of the company remains to pursue strategy which are combination of Growth and Margin Improvement for various business units. We have growth opportunity due to Mega Trends and some of our Business unit like Electric-Electronics in India, Polymer Business in India, Electronics in Romania are geared up to capitalize on specific growth opportunities. We are looking to improve the profitability of some of the business unit like IMES in Italy, Metallic Business in India, 4W lighting business in India and 2W global lighting business by mix of improving internal efficiency, higher capacity utilization and price increase from customers. Strong Order wins for New Business in FY22 across business units will enable us to continue to outperform the Industry growth and it will also help us in improving the profitability. During FY22, lifetime revenue from New Order wins is Rs.35,509 million, and out of that, business win from EV customers is Rs.10,451 million. To capture the growth from Mega Trends, we are happy to announce that the government has approved our application for Production Linked Incentive, and we will be investing around Rs.2800 million over 5 years under the scheme” Result PDF