-
Revenue: INR172 crores for the quarter, a 27% increase year-on-year; half-yearly revenue at INR328 crores, up 35% year-on-year.
-
Profit Before Tax (PBT): INR37.14 crores for the quarter, up 44%; INR61.29 crores for six months, up 48% year-on-year.
-
Profit After Tax (PAT): INR30.72 crores for the quarter, up 500% year-on-year; INR53.6 crores for six months, up 189% year-on-year.
-
EBITDA: INR32.7 crores for the quarter, with margins increasing from 15% to 21% quarter-on-quarter.
-
Adjusted EBITDA: INR56.81 crores, up 37% year-on-year; INR100 crores for six months, up 38% year-on-year.
-
Cash Balance: INR832 crores, debt-free.
-
Physical Locations: 150+ locations.
-
Vehicle Auctions: 1.4 million vehicles auctioned annually.
-
OLX Revenue: INR97.72 crores for six months; EBITDA margin improved from 17% to 18% quarter-on-quarter.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
CarTrade Tech Ltd (BOM:543333) reported its highest-ever quarterly revenue of INR172 crores, marking a 27% year-on-year growth.
-
The company achieved a significant increase in profit before tax, up by 44% to INR37.14 crores for the quarter.
-
EBITDA margins improved from 15% to 21%, demonstrating strong operational leverage.
-
The company remains debt-free with a robust cash balance of INR832 crores.
-
Organic traffic growth is strong, with 95% of users coming from organic sources, indicating strong brand affinity.
Negative Points
-
The OLX business, despite showing growth, has not yet fully realized its potential, with some improvements still pending.
-
Revenue growth in the remarketing segment was modest at 3%, indicating slower progress compared to other segments.
-
There is a slight decline in other income due to the acquisition of OLX, impacting cash balances.
-
The auction business is still facing challenges, with repossession cycles yet to show significant improvement.
-
The company faces competitive pressures, particularly in the consumer business, where competitors are also receiving positive feedback.
Q & A Highlights
Q: How has the OLX business performed since its acquisition, and what are the future growth expectations? A: Vinay Sanghi, Chairman and Managing Director, explained that the focus in the first 13 months post-acquisition was on stabilizing technology platforms and teams. The OLX business has seen revenue growth, and the foundation laid is expected to drive significant growth in the future. The business segments remain the same, with 45% in used cars and two-wheelers, and the rest in non-auto categories like real estate and electronics. The company is confident about future growth across various sectors.