Varroc Engineering Ltd. (Varroc), a global tier-I auto components group, has announced its results for the quarter ended June 30, 2023. Tarang Jain, CMD 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.
In terms of our operations in Q1FY24, we continued our journey of improving the performance. Our revenue from operations grew by 10.0% on YoY basis to Rs. 17,924 million. Our EBITDA margin was 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 our joint venture of Rs 61.3 miilion.
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 we are 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 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.”