CarTrade Tech, the automobiles classifieds platform, saw its net profit surge 400 percent to Rs 12.99 crore in Q1FY24, up from Rs 2.56 crore it registered in the same quarter last year, regulatory filings with the BSE showed.
To put it in to context, the jump in profit comes on the back of a small base.
Last month, CarTrade said it will acquire a 100-percent stake in Sobek Auto India Private Ltd, the arm which operates OLX India’s auto sales segment from OLX India B.V for Rs 537.43 crore. The company’s shares surged nearly 15 percent in early trade on July 11 in response.
The surge in profits came even as CarTrade’s revenues increased marginally by about 5 percent to Rs 86.1 crore in the June quarter from 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 of Rs 86.1 crore in Q1FY24 was a fall from Rs 95.9 crore that the company recorded in Q4FY23. Even its profits were lower on a quarter-on-quarter (QoQ) basis. While it earned a profit of Rs 12.99 crore in the June quarter, that was still lower than Rs 14.95 crore that CarTrade earned in the March 2023 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.
The company, which operates through various brands including CarWale and AutoBiz, saw its earnings per share (EPS) increase to Rs 2.77 in the three months to June 2023, from Rs 0.55 in June 2022.
Earlier this year, CarTrade Tech launched CarTrade Ventures and plans to invest Rs 750 crore in the next 5-7 years to fund acquisition and investment in the automotive space under this business initiative.
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