Varroc Engineering Ltd. (Varroc), a global tier-I auto components group, has announced its results for the quarter that ended Dec 31, 2022. Mr. Tarang Jain, CMD commented, “In India, automobile production for all the segments grew on YoY basis due to easing of semiconductor issues and improved economic activity. However, 2W saw tepid growth as the lower end of the segment has not picked up and exports were impacted by geo-political issues. YoY, 2W production grew only by merely 0.5%, 3W by 13.3%, PV by 21.4%, and CV by 12.0% on YoY basis. On a QoQ basis, the production for all the segments fell because of the early festive season and the reduction of inventory at the channel partners.
In terms of our operations, our revenue from operations grew by 15.3% to Rs.17,228 million on a YoY basis. Our EBITDA margin was at 7.8% and it improved on YoY basis by 140 bps due to improvement in overseas performance. Sequentially, the EBITDA margin has fallen due to lower revenue from operations. The reported PAT for the quarter was Rs. 218 million.
We continue to have strong order wins for new business in 9M FY23 across business units enabling our future growth in India. During 9M FY23, lifetime revenue from new order wins is Rs.35,653 million. Out of this, business wins from 5 prominent EV customers is Rs.8,917 million. The order books also reflect our effort to diversify as we see nearly 48% of lifetime orders win from 4W and 52% from 2&3 wheeler. Diversification can also be seen in the order book from the customer perspective with only 19% from the largest customer.
As stated previously, profitable business wins, improving contribution margin, sweating of assets, net working capital improvement, commercialization of our R&D efforts, control on costs, growing free cash flow, debt reduction, and prudent capital allocation remain the focus of the Company.”
, a global tier-I auto components group, has announced its results for the quarter ended Dec 31, 2022.){kind=link}