Varroc Engineering Ltd's Q3FY25 Quarter Results
- 11 Feb 2025
Result Summary
- Varroc Engineering Ltd reported a 0.5% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 9.7%.
- Its expenses for the quarter were up by 0.7% QoQ and 8.9% YoY.
- The net profit decreased 178.2% QoQ and decreased 111.8% YoY.
- The earnings per share (EPS) of Varroc Engineering Ltd declined at 3.1 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 2077.87 | 2087.46 | 1893.52 | -0.5% | 9.7% |
Total Expenses | 2011.75 | 1997.35 | 1847.83 | 0.7% | 8.9% |
Profit Before Tax | -24.81 | 90.11 | 45.68 | -127.5% | -154.3% |
Tax | 20.39 | 33.01 | -313.14 | -38.2% | -106.5% |
Profit After Tax | -45.19 | 57.80 | 383.88 | -178.2% | -111.8% |
Earnings Per Share | -3.10 | 3.60 | 25.10 | -186.1% | -112.4% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Varroc Engineering Ltd is a prominent player in the automotive industry, primarily engaged in the manufacturing and supply of automotive components. The company offers a wide range of products, including exterior lighting systems, powertrains, and electrical and electronics components. Headquartered in India, Varroc serves a diverse clientele, including major global automotive original equipment manufacturers (OEMs). Over the years, Varroc has expanded its footprint beyond India, establishing a strong presence in Europe, North America, and China. While recent major developments are not specified in the provided data, Varroc, like many in the industry, is likely focused on innovation and adapting to the evolving trends in automotive technology, such as electrification and smart vehicle solutions.
Revenue
In Q3FY25, Varroc Engineering Ltd reported total income of ₹2077.87 crores, marking a slight decrease of 0.5% compared to the previous quarter (Q2FY25), where the total income was ₹2087.46 crores. However, on a year-over-year (YoY) basis, the company experienced a notable revenue growth of 9.7%, as the total income in Q3FY24 was ₹1893.52 crores. This indicates that despite a minor decline in quarter-over-quarter (QoQ) performance, the company has managed to achieve substantial YoY revenue expansion. The financial data suggests stability in revenue generation with significant improvement over the annual period, likely reflecting increased demand or successful market expansion strategies.
Profitability
During Q3FY25, Varroc Engineering Ltd recorded a profit before tax (PBT) of ₹-24.81 crores, a significant reduction from the ₹90.11 crores profit reported in Q2FY25. This represents a dramatic decline in QoQ profitability by 127.5%. Additionally, when compared to Q3FY24, where the PBT was ₹45.68 crores, there is a stark YoY decrease of 154.3%. The profit after tax (PAT) also reflected similar trends, showing a loss of ₹45.19 crores in Q3FY25, contrasting with a profit of ₹57.80 crores in Q2FY25, and a substantial profit of ₹383.88 crores in Q3FY24. Earnings per share (EPS) followed this pattern, declining to ₹-3.10 from ₹3.60 in the previous quarter and ₹25.10 in the same quarter last year. The profitability metrics highlight significant challenges faced by the company in the current quarter, both on a QoQ and YoY basis.
Operating Metrics
Varroc Engineering Ltd's total expenses in Q3FY25 amounted to ₹2011.75 crores, which is slightly higher by 0.7% compared to ₹1997.35 crores in Q2FY25. On a YoY basis, expenses increased by 8.9% from ₹1847.83 crores in Q3FY24. The tax expenses for the quarter were ₹20.39 crores, showing a decrease of 38.2% from the previous quarter's ₹33.01 crores, and a significant change from the negative tax of ₹-313.14 crores recorded in Q3FY24. This shift in tax liability could be attributed to changes in the company's financial performance or regulatory environment. Overall, the operating metrics reveal a trend of rising expenses and altered tax dynamics, which have impacted the company's financial outcomes for the quarter.
