A sharp decline in ESOP expenses in FY23 helped CarTrade post a profit in the year as against a loss of INR 121.35 Cr in FY22
Operating revenue grew 16% to INR 363.74 Cr in FY23 from INR 312.72 Cr in the previous year
The auto marketplace posted a consolidated net profit of INR 17.49 Cr in the quarter ended March 2023 as against a net loss of INR 21.39 Cr in the year-ago quarter
Auto marketplace CarTrade Tech on Friday (April 28) reported a consolidated net profit of INR 40.43 Cr in the financial year 2022-23 (FY23) as against a net loss of INR 121.35 Cr in the previous year, as its ESOP expenses saw a sharp decline in the year under review.
Operating revenue grew 16% to INR 363.74 Cr during the year from INR 312.72 Cr in the previous year.
Total expenses declined 23.2% to INR 367.16 Cr in FY23 from INR 478.07 Cr in FY22 as its ESOP expenses, or non-cash share based payment expenses, plummeted to INR 27.94 Cr during the year under review from INR 185.18 Cr in FY22.
Consequently, CarTrade’s adjusted EBITDA, that is EBITDA before ESOP costs, grew 28% to INR 124.91 Cr from INR 97.25 Cr.
Shares of the company jumped following the announcement of results, ending today’s session 4.09% higher at INR 419.70 on the BSE.
Meanwhile, the auto marketplace posted a consolidated net profit of INR 17.49 Cr in the quarter ended March 2023 as against a net loss of INR 21.39 Cr in the year-ago quarter. Operating revenue rose to INR 95.86 Cr from INR 93.14 Cr in the corresponding quarter of last year, while adjusted EBITDA in the quarter jumped 25% to INR 39.83 Cr from INR 31.96 Cr in Q4 FY22.
Commenting on the financial results, CarTrade founder and chairman Vinay Sanghi said, “We are a debt free profitable company and have surplus liquidity of over INR 1,110 Cr which will allow us to invest in widening our offerings towards providing a seamless phygital experience to all our users.”
Founded in 2009 by ex-Mahindra First Choice CEO Sanghi and former eBay India head Rajan Mehra, CarTrade is an Indian multi-channel auto marketplace that allows users to buy or sell new and used vehicles. It operates multiple platforms like CarWale, CarTrade, BikeWale, CarTrade Exchange, among others.
The company said it saw 34.2 Mn unique visitors in Q4 FY23 as against 29.8 Mn in the year-ago quarter and 35.4 Mn in the preceding December 2022 quarter.
CarTrade said it saw 1.1 Mn auction listings across its platforms in FY23. The auto marketplace claims to have presence at over 200 physical locations through Automalls and abSure outlets.
Earlier this year, CarTrade Tech announced the launch of its venture arm CarTrade Ventures to scale investments and acquisitions in the Indian automotive space. The new venture will deploy up to INR 750 Cr over the next 5-7 years to strengthen its play in the auto-tech industry.
