Tier 1 supplier Varroc Engineering (Varroc) has announced its financial results for Q1 FY2024, with revenue of Rs 1,792 crore, up 10 percent YoY, EBITDA margin of 10 percent and net profit of Rs 55 crore versus a loss of Rs 39 crore for the same period last year.
During the quarter the company clocked new lifetime orders worth Rs 960 crore. Revenue from EV customers came at Rs 65 crore, which represented around 4 percent of revenues.
Tarang Jain, CMD, Varroc said, “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 labour 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.”
Cautious optimism on E2W sales recovery
He further stated said that the company saw improvement in its India and overseas operations and certain incentives from government. The ongoing monsoon and festive season will be key factors to watch out for the automobile sector to continue its momentum.
The reduction in FAME 2 subsidy from June 1, 2023 for EV vehicles impacted volumes sharply but the company says it remains “cautiously optimistic about the recovery in volumes in 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,” he concluded.
