Q2 2025 Varroc Engineering Ltd Earnings Call Transcript

Nov 13, 2024 / 12:00 PM GMT

Release Date Price: ₹500.05 (-7.41%)

Transcript

Key Points

Positve

Varroc Engineering Ltd (NSE:VARROC) reported a revenue growth of 10.3% year-on-year for Q2 FY25, with the India business showing a strong growth of 13.4%.
The company's EBITDA margin improved by 60 basis points and the PBT margin by 150 basis points on a quarter-on-quarter basis.
Net debt reduced significantly by INR 1,554 million in H1 FY25, bringing the net debt to equity ratio down to 0.5.
The order book remains healthy with net new business wins achieving annualized peak revenues of INR 6,046 million, with 37% of these wins from EV models.
Varroc Engineering Ltd (NSE:VARROC) is investing in new technologies and expanding its product portfolio, including integrated starter generators and battery management systems for electric vehicles.

Negative

The passenger car and commercial vehicle segments faced challenges, with passenger vehicles declining by 0.7% and commercial vehicles by 13.3% year-on-year.
Consolidated profitability was impacted by growth in overseas businesses and R&D spending.
The gross margin was slightly weaker quarter-on-quarter due to changes in the sales model and resin-related pricing lags.
The tax rate was higher this quarter due to unrecognized deferred tax assets from overseas losses.
The European and American two-wheeler markets are impacted by destocking and lower consumption, affecting growth in these regions.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VARE.NS - Varroc Engineering Ltd
Q2 2025 Varroc Engineering Ltd Earnings Call
Nov 13, 2024 / 12:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to Q2 and H1 F I 25 earnings conference call of Barro Engineering Limited, hosted by Investec Capital Services. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star and zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr Aditya from Investec. Thank you and over to you.

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Unidentified_2 [2]
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