loader2
Login Open ICICI 3-in-1 Account
Open ICICI 3-in-1 Account

Varroc Engineering Results: Latest Quarterly Results & Analysis

Open Free Trading Account Online with ICICIDIRECT
+91
Varroc Engineering Ltd. 12 Nov 2025 17:39 PM
Result PDF

Q2FY26 Quarterly Result Announced for Varroc Engineering Ltd.

Auto Parts & Equipment company Varroc Engineering announced Q2FY26 results

  • Consolidated revenue from operations was Rs 22,073 million in Q2FY26 a growth of 6.1% YoY.
  • EBITDA: Rs 2,018 million against Rs 2,010 million during Q2FY25.
  • PBT before JV profit for Q2FY26 came at Rs 912 million as compared to Rs 901 million reported in Q2FY25
  • PAT: Rs 633 million against Rs 578 million during Q2FY25.

Tarang Jain, CMD, said: “The Indian economy continues to perform well, experiencing robust growth and has become the world’s fastest growing major economy. India's real GDP grew by 7.8% in the April-June 2025 quarter. The inflation in India continues to moderate. Globally, rising tariff barriers, supply chain restrictions, and geopolitical tensions are increasing uncertainty for businesses. Supply chain resilience and regionalization are becoming key corporate strategies amid this uncertainty. The automotive industry is also preparing to deal with these challenges. In these uncertain times, it becomes very important for the Company to find ways to manage this uncertainty and grow simultaneously during this period. We are moving fast to make our organisation more agile, fundamentally strong, and customer-focused to succeed in this environment.

Over the last 3 years since the divestment exercise, we have been consistently improving on financial prudence, cost reduction and customer delight. As you all know, we focused on free cash flow generation and managed to reduce our debt significantly. As a result, the Net Debt/EBITDA, which was more than 2x in FY 23, is now below 0.3X . The interest burden which was close to 3% of revenue in Q2 of FY 23 has been reduced to below 1.5% in Q2 of FY26. We also improved our gross margins during this period by almost 1%. We also delayered the organization during Q4 of FY 25, which moderated our manpower costs. All these improvements reflected in improvement in PBT margin during this period from 1.1% to over 4% now. We are also continuously improving our speed of response, program management efficacy and delivering first time right. As indicated earlier, we had also established a strong R&D facility in China this FY to enhance our capabilities and to take advantage of skillset available there. We are also exploring opportunities to rationalize fixed manpower cost in plants through VRS schemes. In taking these decisions, we are giving more importance to long-term growth rather than short-term impact.

Over the last few years, we have been able to scale our EV products portfolio and this has resulted in our revenue growth in this segment helping the overall growth of the Company. Today, more than 11% of Revenue comes from supplying to EV customers. We are also experimenting with AI in areas like quality inspection and corporate functions to improve productivity and cut down inefficiencies. We are also working on various other initiatives to reduce working capital and improve throughput. We will be sharing more updates on the same in our future discussions with you.

Our growth plan is built mainly on 3 pillars. The first opportunity for growth comes from the disruption which CASE (Connected, Autonomous, Shared, and Electric) is bringing in the automotive sector. As an organisation, we are focusing significantly on E-mobility, connectivity and ADAS. The second pillar of growth comes from business portfolio management. In this year only, taking advantage of the arbitration verdict, we took the call not to have manufacturing footprint in China. Instead, we have set up a location in Thailand which is a well-established auto manufacturing hub and offers several export opportunities. The third pillar of growth is looking through adjacencies, and the company is looking to further grow its business in aftermarket, exports, non-auto both organically and through M&A.

These strategic calls along with strong financial prudence enabled us to generate good amount of free cash flow and improve the return ratio’s. In Q2FY26, the ROCE of the Company was 23.6% as compared to 12% seen in FY23.

Coming to the performance in this quarter, let’s first understand the industry performance in India.

In terms of Automotive production in India, during Q2FY26, all the segments registered growth on YoY basis as well as QoQ basis due to buoyant economy as well as early festive season:

On YoY basis, 2W grew by 10.6%, 3W grew by 18.3%, PV grew by 4.2% & CV grew by 11.8%.

On QoQ basis, 2W grew by 17.4%, 3W grew by 39.3%, PV grew by 6.5%, and only CV grew by 2.9%

Coming to the operational performance, during Q2FY26, the Company registered consolidated revenue of Rs.22.7 bn with a growth of 6.1% YoY, with India operations growing at 7.0%. The Indian revenue was impacted by industry wide rare-earth issue. This resulted in loss of INR ~ 750 million of Revenue in Q2FY26 or else the growth in the Indian operation would have been 11.8%. As stated earlier, for future growth perspective, we had established an R&D centre in overseas location to support 4W lighting and electronics businesses. This has resulted in higher employee cost starting from Q1FY26. Thus, our EBITDA for the quarter was around 9.1% as compared to 9.7% on YoY basis. Our PBT before JV profit was 4.1% of revenue in Q2FY26 as against 4.3% in Q2FY25.

However, I would like to bring to your attention to the point that the India EBITDA and PBT were strong at 11.5% and 7% respectively and grew both on year-on-year basis as well as sequentially. As explained earlier, the overseas electronics, lighting and forging businesses continue to face challenges due to customer concentration and macro environment. However, we are winning significant orders for the overseas electronics and lighting businesses already and the turnaround is expected to be visible from H2 of FY 27.

We continue to strengthen our balance sheet. The net debt of the company in H1FY26 was reduced by INR 3,680 million and as a result, the net debt to equity is reduced to below 0.22x. The absolute net debt figure was at INR 3,800 million. With significant growth-enabling investments planned in H2, the net debt may see only modest improvement in H2 of this year.

In H1FY26, we achieved net new business wins with annualized peak revenues of Rs. 8,928 million. Notable, business win among these are 4W lighting business for passenger vehicle and also business win from existing EV customer for their increased volume in near future. We also remain confident to win High Voltage Electronics for a range of high-performance e-powertrain components for our Romanian business before the end of this CY.

As emphasized earlier for the transformation to continue in this volatile new-normal environment, we continue to align ourselves and focus on managing the uncertainties while also aiming for growth simultaneously.”

Result PDF

Result PDF

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

Auto Parts & Equipment company Varroc Engineering announced FY24 results:

  • Consolidated revenue from operations was Rs 75,519 million in FY24
  • Consolidated PBT margins in FY24 were at 4.2%, improved by 300 bps
  • Net Debt/Equity improves to 0.64 in FY24 from 1.27 in FY23
  • Strong new order lifetime win of Rs 87.0 billion in FY24

Tarang Jain, CMD commented, “The global economy faced several uncertainties during FY24 due to intensified conflicts in Europe and Asia. The expectations for decisive rate cuts across the world have been moderated in recent times, as underlying inflationary pressures are not easing as fast as expected. However, the risk of global recession seems to be receding now. We hope that the geo-political issues don’t escalate further. The Indian economy continues to outperform and in Q3 FY24 the GDP growth was robust 8.4%.

The automobile sector in India registered growth across all segments during FY24. The passenger vehicle segment grew by 6.9% and CV segment by 3.0%. The 3W and 2W segments registered strong growth of 16.0% and 10.3% respectively. Strong domestic demand and stable economy have enabled this growth.

In Q4FY24 on YoY basis, the automobile growth was strong with 2W growing by 26.5%, 3W by 8.4% and PV by 9.7%. The CV segment saw a marginal de-growth of 0.5%.

For the full FY24, our India operations continued to deliver strong performance with growth of over 14.1%. Our overseas business was impacted in FY24 due to significant degrowth in 2W automotive sales and heavy customer concentration in certain overseas markets.

The full year revenue was Rs. 75,519 million, the PBT for the year was Rs. 3,149 million which includes profit from our joint venture of Rs 444 miilion. The PBT margin improved by 300 basis point on YoY basis and came at 4.2%. PBT for the year. PBT was also impacted by certain onetimers like the provision of Rs.160 million created for doubtful recovery of receivables from an EV customer.

In FY24 the capex spent was Rs. 2,016 million. Thus, better profitability, tighter control on capex & working capital enabled us to reduce the net debt to below Rs. 10,000 million at Rs. 9,826 million. The Net Debt to Equity ratio improved to 0.64 in FY24 from 1.27 in FY23. The loan servicing ability also improved as our Net Debt to EBITDA improved to 1.29 in FY24 from 2.13 in FY23."

Result PDF

Auto Parts & Equipment company Varroc Engineering announced Q3FY24 & 9MFY24 results:

  • Consolidated revenue from operations was Rs 18,846 million in Q3FY24, registering a growth of 9.4% on a YoY basis
  • Profit Before Tax grew 5 fold YoY
  • Consolidated PBT margins in Q3FY24 were at 3.7%, improved by 300 bps YoY
  • Strong new order lifetime win of Rs 67.57 billion in 9MFY24

Tarang Jain, CMD commented, “The Indian Economy continues to sustain its growth momentum with a GDP growth of 7.6% in Q2FY24 exceeding market expectations.

The automobile production in India during Q3FY24 grew on a YoY basis for all the segments. Passenger vehicles grew by 5.0%, Commercial vehicles grew by 5.9% whereas 3W and 2W registered a strong growth of 13.4% and 19.0% respectively. This growth was due to a strong economy and the 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 a QoQ basis seems to be mainly due to the year-end phenomenon.

Our operations in Q3FY24 mirrored the industry situation. Our revenue in India grew by 20.1% higher than both two-wheeler & passenger vehicle industry growth on a YoY basis. However, our revenue from our overseas operations had a de-growth as two-wheeler production levels went down in certain markets like Vietnam and Italy. In addition, our customer concentration in these markets impacted our revenue.

As we look forward to our overseas business, our focus is to drive customer diversification in the order book and hence mitigate our customer concentration risk. We also drive cost actions through insourcing and working capital optimization. These efforts are likely to lead to a gradual recovery in overseas markets and improved financial performance in the medium term.

Despite de-growth in overseas markets in Q3, the overall revenue from operations grew by 9% on a YoY basis to Rs 18,846 million, the reported PBT for the quarter was Rs 708 million which includes profit from our joint venture of Rs 250.7 million. The PBT margin improved by 300 basis points on a YoY basis and came at 3.7%."

Result PDF

Auto Parts & Equipment company Varroc Engineering announced Q2FY24 results:

  • Consolidated revenue from operations was Rs 18,868 million in Q2FY24, registering a growth of 2.9% on a YoY basis
  • Consolidated PBT margins in Q2FY24 were at 3.9%, improved by 220 bps YoY
  • Net Debt reduced by Rs 2,214 million in Q2FY24 and Annualized ROCE of 23%
  • Strong new order lifetime win of Rs.36.02 billion in H1FY24

Tarang Jain, CMD commented, “The geopolitical situation in Europe and the Middle East has created uncertainty in the global business environment. The interest rates may come under pressure if inflation goes up further due to a spike in oil prices. Despite these uncertainties in the global markets, we see a resilient and growing economy in India. The Indian economy has sustained its growth momentum in FY 2024 so far. Though the urban demand has already picked up well, we are expecting that the rural demand will also pick up with the current festive season.

In terms of our operations in Q2FY24, we continued our journey of improving operational and financial performance. Our revenue from operations grew by 3% on a YoY basis to Rs 18,868 million, despite weak growth in overseas markets due to the holiday season in Europe. The reported PBT for the quarter was Rs 739 million which includes profit from our joint venture of Rs 80.6 million. Our balance sheet has strengthened in H1FY24 as we pulled ahead some of the debt reduction initiatives to Q2 and reduced our net debt significantly by over Rs 2,714 million in H1FY24 and our Net Debt/Equity ratio to below 1X. Our debt servicing ability has also improved as Net Debt to EBITDA is now at 1.35X compared to over 2.13X at the start of the financial year. The annualized ROCE for the H1FY24 is around 23%.

We continue to win the trust of the customers as they are awarding us more business. This is reflected in the new order win. In H1FY24 our new lifetime order win is Rs 36.02 billion. In Q2FY24, we have added 3 new customers for supplying components to their EV models. In the quarter, we also won business from 2 customers for supplying components related to the EV powertrain. These new orders will enable us to strengthen our presence in the EV component space. Our Revenue from supplying to EV players in Q2FY24 was approx. ~4.4% of our overall revenue.

Our effort to increase our technical capability was further enhanced in H1FY24 as we filed 9 patents in India and 1 overseas.

We continue to enhance our engagement with OEMs and showcase our ability to deliver advanced technology solutions at affordable cost to them. We are also working on various other efforts like capacity utilization, prudent capital allocation, and cost reduction across the board to make our business more robust.”

 

Result PDF

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

Trending News

RBI will buy ₹2 lakh cr securities, launches dollar swap auction

The Reserve Bank of India on Tuesday said it will purchase government securities worth ₹2 lakh crore and conduct a $10 billion buy/sell dollar-rupee swap auction to inject liquidity in the banking system.

Published on 24-Dec-2025 09:09

Tata Motors launches Avinya EV brand

Tata Motors plans to formally roll out its new Avinya premium EV brand by the end of 2026, positioning it above its existing Tata.ev portfolio and building it largely on JLR’s EMA and Tata’s Gen 3 born-electric architectures. 

Published on 24-Dec-2025 09:08

Adani Ports acquires NQXT Australia.

Adani Ports and Special Economic Zone Limited (APSEZ) has completed the acquisition of a 100% interest in NQXT Australia. 

Published on 24-Dec-2025 09:07

L&T wins at least ₹5,000 cr EPC order from BPCL

Larsen & Toubro’s Hydrocarbon Onshore (L&T Onshore) business has secured a major EPC order (₹5,000–10,000 crore) from BPCL for setting up India’s largest LLDPE/HDPE swing unit (2 × 575 KTPA) at Bina, Madhya Pradesh, on a lump-sum turnkey basis. 

Published on 24-Dec-2025 09:06

Radico Khaitan launches premium dark rum The Kohinoor Reserve

Radico Khaitan (RKL) rolled out The Kohinoor Reserve Indian Dark Rum, a globally acclaimed, triple-aged rum matured in American Bourbon barrels, Cognac XO casks and Vermouth casks, a unique process that sets it apart in the global dark rum category. 

Published on 24-Dec-2025 09:05

ZF sells ADAS business to Harman International

ZF Friedrichshafen AG, the parent of ZF Commercial Vehicle Control Systems India (ZF CV), has agreed to sell its Advanced Driver Assistance Systems (ADAS) business, including compute platforms, smart cameras, radar and ADAS software, to US-based in-cabin electronics major Harman International for an enterprise value of €1.5 billion

Published on 24-Dec-2025 09:04

Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Download App

Download Our App

Play Store App Store
market app
✕
Application status