Varroc Engineering Ltd., a global tier-I auto components group, has announced its results for the quarter ended March 31, 2023. For the financial year 2022-23, consolidated revenue from continued operations was Rs 68,631 million, registering a growth of 17.4% on YoY basis. Profit after tax for continued operations was at Rs 388 million in FY23. Consolidated revenue from operations was Rs 16,901 million in Q4 FY23, registering a growth of 2.3% on YoY basis. PAT was positive at Rs 400 million in Q4 FY23 as against loss reported last year.
Mr. Tarang Jain, CMD, Varroc Engineering, commented, “Automobile production in India during Q4 FY23 grew on YoY basis for most of the segments, due to easing of semiconductor issues and improved economic activity. However, the industry segment from which we generate around 70% revenue i.e. 2W, saw de-growth of -3% as exports are impacted by geo-political issues and domestic demand was impacted due to lower consumption in rural areas.”
The early signs of increase in rural consumption and strong domestic economy are expected to augur well for a good FY24.
In India, we continue to have strong order wins for new business in FY23 across business units. During FY23, lifetime revenue from new order wins is Rs 51,782 million. Out of this, business wins from 7 prominent EV customers is Rs 17,968 million. The order books also reflect our effort to diversify as we see nearly 56% of lifetime orders win from 4W and 44% from 2and 3-wheelers, Mr. Jain added.
