CarTrade In The Black, Reports Profit Of INR 3.31 Cr In Q1

Mumbai-based auto platform CarTrade Tech on Friday (July 29) reported a consolidated profit after tax (PAT) of INR 3.31 Cr for the first quarter (Q1) of financial year 2022-23 (FY23) as against a loss of INR 46.12 Cr in the corresponding quarter last year. It had reported a net loss of INR 21.39 Cr in the March quarter of FY22.

CarTrade also accounted for a non-cash adjustment of INR 5.3 Cr for employee stock options during the quarter. Its adjusted PAT for the quarter stood at INR 8.58 Cr.

The company’s total income grew 47% year-on-year (YoY) to INR 92.77 Cr during the quarter under review. However, it declined 12% on a quarter-on-quarter (QoQ) basis from INR 105.88 Cr in the preceding March quarter. 

The auto platform’s total expenses fell more than 30% QoQ to INR 88.98 Cr in Q1 FY23. Employee costs accounted for a majority of the expenses at INR 48.81 Cr, declining 42% on a QoQ basis. Marketing expenses also fell by 6% in the April-June quarter to INR 5.99 Cr. 

The earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at INR 17.7 Cr in the first quarter of FY23, a 108% growth over the corresponding period of last year. However, on a quarterly basis, it declined 44%. 

Commenting on the financial results, CarTrade Chairman Vinay Sangh said, “This growth reflects our focused approach to operational efficiencies and profitability. The strength of our brand and its high brand recall value is evident in our large average monthly unique visitor base of 31 million of which 84.7% is organic. Our auction listings grew YoY by 28%.” 

The platform claimed that it averaged 31 Mn monthly unique visitors in the first quarter of FY23, of which 84.7% visitors were organic. The startup said that the number of auction listings during the quarter stood at 2.72 Lakh.

In addition, the platform also sold 57,710 vehicles via these auctions in Q1 FY23. 

Founded in 2009 by Sanghi, CarTrade is an online automotive market for buyers and sellers of new and used vehicles. It has a network of more than 180 physical locations across the country.

The startup went public last year in a lacklustre initial public offering (IPO).

It competes with startups such as Cars24. Droom, CarWale, CarDekho, among others, in the used car segment.

According to a report, India’s used car segment was estimated at about $17.9 Bn in FY21, with a volume of 3.9 Mn vehicles. The market is expected to churn a volume of 7.7 Mn by 2026, with a projected valuation of $44.7 Bn.