Auto marketplace CarTrade Technologies reported a 132% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to INR 12.96 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24). The startup had posted a PAT of INR 5.57 Cr in the year-ago period.
However, net profit declined 4% from INR 13.51 Cr in Q1 FY24.
The auto marketplace reported a record revenue of INR 314.33 Cr in the quarter ended September 2023, up 3.57X YoY from INR 87.88 Cr in Q2 FY23. On a quarter-on-quarter (QoQ) basis, revenue from operations jumped 3.65X from INR 86.06 Cr in Q1 FY24.
However, it must be noted that the latest quarter results also include the numbers for OLX India, which CarTrade acquired in August this year. Without OLX numbers, CarTrade’s operating revenue grew 10% YoY to INR 97.06 Cr, while PAT rose 164% to INR 14.74 Cr.
Commenting on the quarterly results, CarTrade cofounder and chairman Vinay Sanghi said, “This has been an important quarter for CarTrade Tech, highlighted by the acquisition and ongoing integration of the OLX India business. Our strategy has involved restructuring the OLX operations to improve our unit economics and ensure that the classifieds business enhances and supports our consumer group business effectively.”
Meanwhile, total expenses, including OLX numbers, jumped 254% to INR 314.74 Cr in Q2 FY24 from INR 88.73 Cr in the year-ago period.
This was primarily on account of purchase of stock-in-trade and inventory change, which accounted for costs worth INR 182.3 Cr in Q2 FY24 and was missing during the year-ago quarter.
Employee benefit expenses, including ESOP costs, stood at INR 65.94 Cr during the quarter under review as compared to INR 52.58 Cr in Q2 FY24. Of this, ESOP costs accounted for INR 4.4 Cr, nearly halving from INR 7.96 Cr. ‘Other expenses’ more than doubled to INR 54.49 Cr in Q2 FY24 compared to INR 27.12 Cr in Q2 FY23.
Founded in 2009 by ex-Mahindra executive Sanghi and former eBay India head Rajan Mehra, CarTrade is an auto marketplace that sells products across all vehicle types and value-added services. The startup operates vertical leaders such as CarTrade, BikeWale, and CarWale, among others.
In a statement, Sanghi said the OLX acquisition has strengthened the company’s position in the market and made the consolidated entity the biggest auto portal, classifieds platform, and auto auction platform in the country.
“Our platforms together attract around 70 Mn unique visitors each month, of which 90% originate organically. This is a testament to the strength of our brands and our dedication to offer a superior customer experience,” added Sanghi.
The company also informed the bourses that it will continue to focus and grow the newly-acquired entity’s classified business. Reacting to the recent closure of OLX’s parent entity Sobek Auto India’s C2B business, CarTrade said the decision was taken on account of challenges related to unit economics. The shutting down of the arm, as per the auto marketplace, led to reduction of costs and losses in the consolidated company’s business.
Meanwhile, the company continued to see healthy growth on the operational front. The auto marketplace clocked 7 Cr average monthly unique visitors in Q2 FY24, 90% of which were organic. Of this, Carwale and Bikewale together contributed 3.89 Cr.
The number of auction listings and volume on its Shriram Automall platform declined YoY to 2.97 Lakh and 56,151 respectively in Q2 FY24. The company claims to have more than 350 physical stores, spanning Automalls, abSure, Signature and OLX outlets, across the country.
Shares of CarTrade closed 3.4% higher at INR 728.75 on the BSE on Thursday (November 9).
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