Tier 1 supplier Varroc Engineering has announced its results for the Q4 FY2022 and FY2022.
The company reported revenue of Rs 5,844 crore (+33.5% YoY), compared to Rs 4,373 crore for the same period last year. The net loss nearly doubled to Rs 1,106 crore compared to Rs 628 crore reported a year ago.
For Q4 FY2022, the revenue came at Rs 1,652 crore compared to Rs 1,504 crore for the same period last year; net loss of Rs 284 crore compared to Rs 144 crore loss reported a year ago.
Tarang Jain, CMD, Varroc Engineering said, “In India, the auto production for two-wheelers in FY22 fell by 3.5 percent despite lower base of last year due to weak rural demand and higher cost of ownership. Passenger vehicle in India rose by 19.2 percent due to preference for personal mobility. Commercial vehicle and three-wheeler also witnessed growth due to lower base and overall economic recovery.
Jain stated that under this backdrop, the Revenue from continued operations for FY2022 grew by 33.6 percent to Rs 5,842 crore as against Rs 4,373 crore in FY2021. This he says outperformed industry production numbers. “The margins were impacted by higher commodity prices, forex losses on intercompany loans and lower operating utilisation in some of the geographies. The revenue for Q4 FY22 for continued operations came at Rs 16,520 million which increased 11 percent Q-o-Q and 9.8 percent Y-o-Y again outperforming the industry production numbers. The margins for the quarter are still impacted by higher raw material prices. The focus of the company remains to pursue strategy which are combination of growth and margin improvement for various business units. We have growth opportunity due to megatrends and some of our business unit like electric-electronics in India, polymer business in India, electronics in Romania are geared up to capaitalise on specific growth opportunities. We are looking to improve the profitability of some of the business unit like IMES in Italy, metallic business in India, 4W lighting business in India and two-wheeler global lighting business by mix of improving internal efficiency, higher capacity utilisation and price increase from customers. Strong Order wins for new business in FY22 across business units will enable us to continue to outperform the Industry growth and it will also help us in improving the profitability. During FY22, lifetime revenue from new order wins is Rs 3,550 crore, and out of that, business win from EV customers is Rs 1,045 crore. To capture the growth from megatrends, we are happy to announce that the government has approved our application for Production Linked Incentive, and we will be investing around Rs.2800 million over 5 years under the scheme,” concluded Jain.
