CarTrade Back In The Black With INR 25 Cr PAT In Q4; Revenue Jumps 38% YoY

Online classifieds and auto auction platform CarTrade Technologies reported a 43% jump in profit after tax (PAT) to INR 25 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) from INR 17.5 Cr posted in the same quarter last year, largely helped by OLX’s classifieds business.

It is pertinent to note that the company had slipped into the red in the prior quarter – Q3 FY24 – with a net loss of INR 23.5 Cr, largely due to the OLX auto business which it shut in that quarter.

CarTrade’s operating revenue surged 51.5% to INR 145.3 Cr in the reported quarter from INR 95.9 Cr in Q4 FY23. 

CarTrade also reported its highest-ever quarterly total revenue of INR 161 Cr in Q4 FY24. On a quarter-on-quarter basis, this was a 4.8% rise from INR 138.6 Cr posted in Q3 FY24.

Following its Q4 and FY24 earnings announcement, the shares of CarTrade jumped as much as 14% to INR 855 on the BSE. By 1.40 PM IST, the stock shed some of this gain and was trading 8% higher at INR 809.85.

Speaking on the earnings, Vinay Sanghi, chairman and founder of CarTrade, said, “The acquisition of OLX India during this period has not only strengthened our leadership position and also paved the way for substantial synergies among OLX India, CarWale, BikeWale, and Shriram Automall.” 

In August 2023, CarTrade acquired a 100% stake in Sobek Auto India, comprising OLX Autos C2B business and OLX classifieds business, for INR 535.54 Cr. However, in October, the company announced shutting down the C2B operations, or OLX’s auto transaction business, amid unit economics challenges.

In Q4 FY24, classifieds segment contributed INR 43.3 Cr to CarTrade’s total revenue, which was null in the corresponding quarter of the previous year.

On the other hand, the company earned INR 52.8 Cr from its remarketing business, registering a 1% decline year-on-year (YoY). Revenue from its consumer business increased 15% YoY to INR 49.1 Cr in the reported quarter.

In the fiscal year 2024, CarTrade’s PAT stood at INR 20 Cr on a total revenue of INR 555.23 Cr.

On the expenditure front, CarTrade’s total expenses stood at  INR 130.9 Cr, registering almost a 40% jump YoY. In that, the company spent INR 66.8 Cr towards employees benefit expenses.

“Leveraging our leadership expertise, we are poised to capitalise on numerous opportunities to innovate and cater to our unique monthly visitor base of 70 Mn across various platforms,” Sanghi added.