Shares of Varroc Engineering Ltd. rose more than 12% in early trading on Aug. 10 after the company posted a profit in the first quarter of fiscal 2024 from a loss a year ago.
As of 9:30 a.m., shares traded at Rs 386 on BSE, up 12.7% from the previous close, while Indian benchmark Sensex fell 0.3% to 65,782 points.
The company recorded a net profit of Rs 55 crore in Q1FY24 compared to a loss of Rs 39 crore in Q1FY23. This positive change is due to the fact that the company has achieved good results in the domestic and export markets, as well as receiving specific incentives from the government. Revenue from Varroc Engineering Ltd. rose 10.4% in the first quarter from a year ago to Rs 1,805.70 crore. EBITDA rose 34% year-on-year to Rs 180.20 crore, while EBITDA margins increased to 10% from 8.2% a year ago, thanks to business matching, incentives and operating leverage . In the first quarter, the company also announced a debt reduction of Rs 50 billion. As a result, this debt reduction results in lower interest expenses on a quarterly basis.
“The current monsoon and festive season will be key to ensuring the automotive sector continues to thrive. The reduction of Fame II subsidies from June 1 for electric vehicles has had a dramatic effect on EV volumes, but we are cautiously optimistic that vehicle volumes will recover in the coming months,” the company said in a statement. a notice on the Stock Exchange.
“Our focus will remain on strengthening our competitiveness in India and globally by developing world-class products and services. We will strengthen and capitalize on our footprint. As we are a global company with strong roots in India, our businesses will continue to generate growth and profits while maintaining the record. strong fiscal law,” he added.
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