Varroc Engineering Limited delivers Q1 FY24 results
The revenue from operations grew by 10.0% on YoY basis to Rs. 17,924 million. EBITDA margin stood 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.
Pune- Varroc Engineering Ltd. (Varroc)., a global auto components group, today announced its results for the quarter ended June 30, 2023.
The revenue from operations grew by 10.0% on YoY basis to Rs. 17,924 million. EBITDA margin stood 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 the joint venture of Rs 61.3 miilion.
Mr. Tarang Jain, CMD Varroc Engineering Limited 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 turmoil in the financial markets, we see a strong labor market and consumption in developed economies.
The Indian economy on other hand has sustained its growth momentum in FY 2024 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 the performance.
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 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.”
The company states that 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 1st June 2023 for EV vehicles impacted EV volumes sharply but do expects about the recovery in volumes in coming months.
About Varroc Engineering Ltd.
Varroc Engineering Ltd is a global tier-1 automotive component group. It was incorporated in 1988. The group manufactures and supplies electricals-electronics, polymers, metallics and exterior lighting systems to leading OEM’s with end-to-end capabilities across design, development and manufacturing for two-wheeler, three-wheeler, passenger vehicles, commercial vehicle, and off-highway vehicle worldwide
