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News: Topline for the quarter came in at ₹907 crore (up 18% YoY). EBITDA in Q2FY25 came in at ₹52 crore (up 5.7% YoY and 7% QoQ) with corresponding EBTDA margins at 5.7% (down 140 bps YoY, 10 bps QoQ). Resultant PAT for the quarter came in at mere ₹0.3 crore vs. ₹ 20.5 crore in Q2FY24 and ₹ 3.5 crore in Q1FY25. EBITDA margins in the new car sales segment was at 0.7% (down 100 bps YoY & 60 bps QoQ) while the after-service segment reported at 18.9% (flat YoY & up 250 bps QoQ).
Views: The additions of new OEMs partners have supported the topline growth for the quarter. However, profitability was impacted by higher fixed cost due to commencement of 12 new outlets during the quarter. Also, the company has maintained a new car inventory to ~41 days (vs industry avg of 80-85 days) which has affected the margins. We look forward to management’s insights on achieving profitable growth amid series of upcoming launches in the premium PV space which could help the company post better numbers going forward.
Impact: Negative