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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.”
