CarTrade Tech, a prominent player in India’s auto marketplace, has announced substantial year-on-year (YoY) growth in the second quarter of the financial year 2023-24 (FY24).
In Q2 FY24, the company witnessed a remarkable 132% YoY surge in its consolidated profit after tax (PAT), reaching Rs 12.96 crore compared to Rs 5.57 crore in the corresponding period last year. However, there was a slight 4% dip in net profit from Rs 13.51 crore in the first quarter (Q1) of FY24. The quarter’s revenue soared to a record Rs 314.33 crore, a significant upswing from Rs 87.88 crore in Q2 FY23.
The pivotal acquisition of OLX India in August left a notable imprint on CarTrade’s financial landscape. When factoring in OLX’s figures, the company experienced a 10% YoY growth in operating revenue, amounting to Rs 97.06 crore. The profit after tax (PAT) also saw an impressive upswing, rising by 164% to Rs 14.74 crore.
Vinay Sanghi, Chairman and Founder of CarTrade Tech, emphasized the significance of the quarter, stating, “This has been an important quarter for CarTrade Tech, highlighted by the acquisition and ongoing integration of the OLX India business.” Sanghi outlined the company’s strategic approach, involving the restructuring of OLX operations to enhance unit economics and ensure effective support for the consumer group business.
Total expenses, inclusive of OLX, witnessed a substantial increase of 254%, reaching Rs 314.74 crore in Q2 FY24. This surge was primarily attributed to stock-in-trade purchases and inventory changes. Employee benefit expenses, including ESOP costs, were reported at Rs 65.94 crore. Notably, ‘other expenses’ more than doubled from the previous year, reaching Rs 54.49 crore.
CarTrade’s strategic maneuvers have solidified its position as a leading force in India’s auto portals, classifieds, and auto auctions. The platforms attract approximately 70 million unique visitors each month, with a substantial 90% originating organically. Despite a decline in auction listings and volume on its Shriram Automall platform, the company maintains a robust physical presence through over 350 stores nationwide.
Vinay Sanghi reiterated the company’s commitment to providing a superior customer experience, stating, “Our platforms together attract around 70 million 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.”
