Varroc reports Rs 383 crore net profit for Q3, strong order book of Rs 6,757 crore in 9 month of FY2024

Tier 1 supplier Varroc Engineering (Varroc) has announced its results for the Q3 and 9-months of FY2024.

The company reported revenue of Rs 1,884 crore, up 9.4 percent, EBITDA of Rs 173 crore, up 24.5 percent and net profit of Rs 383 crore, compared to Rs 21 crore for the same period last year.

The reported revenue was higher due to recognition of tax benefit on the write-off of loans impaired at the time of divestment of four-wheeler lighting businesses in Europe and Americas and the reversal of tax provisions created in the earlier quarters of the year.

For the 9-month period the revenue came at Rs 5,577 crore, up 7.4 percent YoY, EBITDA at Rs 540 crore, up 23.6 percent and net profit of Rs 494 crore versus a loss of 1.2 crore for the same period last year.

The reported profit was higher due to recognition of tax benefit on write-off of loans given for the 4W European & American lighting business prior to divestment.

Tarang Jain, CMD, Varroc said, ‘The Indian economy continues to sustain its growth momentum with a GDP growth of 7.6% in Q2 FY24 exceeding market expectation.

The automobile production in India during Q3 FY24 grew on a YoY basis for all the segments. Passenger vehicle grew by 5%, Commercial vehicle grew by 5.9% whereas 3W and 2W registered strong growth of 13.4% and 19.0% respectively. This growth was due to strong economy and late festive season this year.

Sequentially, i.e. QoQ we have seen de-growth in all the segments, CV has de-grown by 8.3%, PV by 10.9%, 3W by 8.9% and 2W saw de-growth of 1.5%. The de-growth on QoQ basis seems to be mainly due to year-end phenomenon.’