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Varroc loss widens to Rs 285 crore in Q4

The EBITDA margin for FY22 was 6.1 percent as against 7.7 percent in FY21 for the continued operations, he said, adding that the margins were impacted by higher commodity prices, forex losses on intercompany loans, and lower operating utilisation in some of the geographies.

May 30, 2022 / 10:27 PM IST
Representative image

Representative image

Global tier-1 auto parts manufacturer and supplier Varroc on Monday reported a net loss of Rs 284.96 crore for the quarter ended March 2022 against a net loss of Rs 144.32 crore in the same quarter of FY21. The company in a release said revenue from operations stood at Rs 1,652 crore in the March quarter of FY22 as compared to Rs 1,504.30 crore in the same quarter a year earlier.

For the financial year ended March 2021-22, net loss increased to Rs 1,106.73 crore as against a net loss of Rs 628.64 crore in FY21, it said. Revenue from operations during the full fiscal 2021-22 was recorded at Rs 5,844.20 crore as compared to Rs 4,373.90 crore clocked in FY21.

The company said the government has approved its application for the Production- Linked Incentive (PLI) and "it will be investing around Rs 280 crore over five years under the scheme". The auto production for two-wheelers in India in FY22 fell by 3.5 percent despite the lower base of last year due to weak rural demand and higher cost of ownership.

Passenger vehicles in India rose by 19.2 percent due to preference for personal mobility, while commercial vehicles and three-wheelers witnessed growth due to lower base and overall economic recovery, said Tarang Jain, CMD, Varroc Engineering Ltd. The EBITDA margin for FY22 was 6.1 percent as against 7.7 percent in FY21 for the continued operations, he said, adding that the margins were impacted by higher commodity prices, forex losses on intercompany loans, and lower operating utilisation in some of the geographies.

"We have growth opportunities due to mega trends and some of our business units like electric-electronics in India, polymer business in India, electronics in Romania are geared up to capitalise on specific growth opportunities. "We are looking to improve the profitability of some of the business units like IMES in Italy, metallic business in India, 4W lighting business in India and 2W global lighting business by mix of improving internal efficiency, higher capacity utilisation and price increase from customers," Jain stated.

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It also said that during FY22, lifetime revenue from new order is Rs 3,550.9 crore, including order worth Rs 1,045.10 crore from the EV customers.
PTI
first published: May 30, 2022 10:27 pm
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