Varroc Engineering Ltd., a global Tier-1 auto components supplier, reported a revenue increase of 10.3% YoY to INR 20,808 million for Q2 FY25, driven by a 13.4% growth in its India business. Profit Before Tax (PBT) for the quarter stood at 4.4%, supported by positive operating leverage in India, though consolidated profitability was impacted by weaker overseas performance and R&D investments abroad.
Sequentially, Varroc posted a 9.6% QoQ revenue increase, with EBITDA margin improving by 60 basis points and PBT margin by 150 basis points. Annualized Return on Capital Employed (ROCE) stood at 19.0%.
CMD Tarang Jain highlighted ongoing cost reduction initiatives, headcount rationalisation, and operational streamlining, aiming for a leaner, more agile organisation.
Capex spend for H1FY25 was INR 1,030 million, with planned increases in H2 for new SMT lines and EV capacity expansion. The company is also acquiring land in southern and western India to support future growth.
Varroc’s H1FY25 order book remained robust, with INR 6,046 million in new business wins, 37% of which are from EV models. New products include integrated starter generators, soft-touch door panels, and battery management systems for EVs, Jain added.
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