CarTrade ‘s Q1FY24 Net Profit Surges 400% Amidst a moderate revenue increase
- ByStartupStory | August 11, 2023
CarTrade, the automotive classifieds platform, witnessed a substantial surge of 400 percent in net profit, reaching Rs 12.99 crore during Q1 FY24 compared to Rs 2.56 crore in the corresponding quarter of the previous year, as indicated by regulatory filings with the BSE.
It’s important to note that this impressive profit increase is based on a relatively small initial figure.
CarTrade recently announced its acquisition of a full 100 percent stake in Sobek Auto India Private Ltd., the entity responsible for OLX India’s auto sales segment, from OLX India B.V. for Rs 537.43 crore. Following this announcement, the company’s shares experienced an early trade surge of nearly 15 percent on July 11.
The surge in profits occurred despite only a slight rise of around 5 percent in CarTrade’s revenues, which reached Rs 86.1 crore in the June quarter compared to Rs 82.7 crore in the same period last year.
“I am happy to report that we are amongst a few internet companies that continue to grow and are profitable. In Q1 FY24, we achieved quarterly revenue of Rs 106.91 crores which is an 18% Y-O-Y growth. Our PAT for Q1 FY24 stood at Rs 13.51 crores representing more than a 300 % Y-O-Y growth and continues to outpace our revenue growth, as we have an asset-light and scalable business model,” said Vinay Sanghi, Chairman and Founder, CarTrade Tech.
On a sequential basis, CarTrade’s revenue decreased from Rs 95.9 crore in Q4FY23 to Rs 86.1 crore in Q1FY24. Similarly, the profits also showed a decline from Rs 14.95 crore in the March 2023 quarter to Rs 12.99 crore in the June quarter.
“Our robust brands manifest their strength by being leaders in Google Trends and in our huge average monthly unique visitor count of 34 million, 85% of which originates organically,” Sanghi added.
During the three months ending June 2023, the company’s earnings per share (EPS) increased to Rs 2.77 from Rs 0.55 in the same period in 2022.
Earlier this year, CarTrade Tech introduced CarTrade Ventures, a business initiative aimed at investing Rs 750 crore over the next 5-7 years to support acquisitions and investments within the automotive sector.
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