Excluding the discontinued auto sales division of OLX, CarTrade posted a net profit of INR 21.96 Cr in Q3 FY24 against INR 14.04 Cr in the year-ago period
Operating revenue increased over 42% to INR 138.6 Cr in Q3 FY24 from INR 97.2 Cr in the prior year’s quarter
After acquiring a 100% stake in Sobek Auto India last year, CarTrade shut the C2B operations of the auto transaction business of OLX amid unit economics challenges in October
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Online classifieds and auto auction platform CarTrade Technologies slipped into the red in the December quarter (Q3) of the financial year 2023-24 (FY24). It posted a net loss of INR 23.5 Cr during the quarter, hurt by the loss in the auto sales division of the OLX business that it shut during the quarter.
Excluding the discontinued operations, CarTrade posted a net profit of INR 21.96 Cr. This was a 56% growth from INR 14.04 Cr profit posted in Q3 FY23.
The company’s operating revenue increased over 42% to INR 138.6 Cr in Q3 FY24 from INR 97.2 Cr in the prior year’s quarter.
CarTrade’s consumer revenue jumped to INR 49.4 Cr in Q3 FY24 from INR 42 Cr a year ago. However, its remarketing business revenue declined to INR 46 Cr in the reported quarter from INR 52.2 Cr in Q3 FY23.
Speaking on the Q3 earnings, Vinay Sanghi, chairman and founder of CarTrade called it a “remarkable” quarter due to a 31% surge in total income and a 56% increase in profit.
“In a strategic move, we successfully completed our recent business acquisition of OLX and capitalised on the vast opportunities presented by the profitable classifieds business,” said Sanghi.
It is pertinent to note that in August last year, CarTrade acquired a 100% stake in Sobek Auto India, comprising OLX Autos C2B business as well as OLX classifieds business, for INR 535.54 Cr.
However, in October, the company announced shutting down the C2B operations, or the auto transaction business, amid unit economics challenges.
Meanwhile, CarTrade said it received 70 Mn average monthly unique visitors in Q3 FY24, of which more than 90% were organic.
The company now has a physical presence in more than 350 locations, including Shriram Automalls, CarWale abSure and Signature Dealers and OLX Franchisee.
On the expenditure side, CarTrade’s total expenses increased 43.4% to INR 108.7 Cr in Q3 FY24 from INR 75.8 Cr in the prior year’s quarter.
In that, employee cost, excluding ESOPs, was the biggest contributor at INR 63 Cr. It rose 39.3% YoY in Q3.
CarTrade’s marketing expenses also grew to INR 7.1 Cr in the quarter from INR 6.4 Cr in Q3 FY23.
Post the Q3 earnings announcement, CarTrade’s shares ended Thursday’s (February 8) trading session 1.7% lower at INR 695.7 on the BSE.
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