CarTrade Returns To Black With INR 45.5 Cr Q3 Profit

CarTrade Returns To Black With INR 45.5 Cr Q3 Profit

SUMMARY

CarTrade posted a consolidated net profit of INR 45.53 Cr in Q3 FY25 against a loss of INR 23.55 Cr in the year-ago quarter

On a quarter-on-quarter basis, net profit zoomed 48% from INR 30.72 Cr

Operating revenue surged 27% to INR 176.21 Cr during the quarter under review from INR 138.58 Cr in Q3 FY24.

Online classifieds and auto auction platform CarTrade


Sector
Ecommerce
Stage
Venture Round
Total Funding
$310.81 Mn+
posted a consolidated net profit of INR 45.53 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) against a loss of INR 23.55 Cr in the year-ago quarter.

It is pertinent to note that CarTrade incurred a one-time loss of INR 45.51 Cr in the December quarter last year after its subsidiary Sobek Auto India shut down its auto sales division (C2B business) due to pitfalls in unit economics.

On a quarter-on-quarter basis, net profit zoomed 48% from INR 30.72 Cr.

EBITDA jumped 98% to INR 50.07 Cr in Q3 FY25 from INR 25.35 Cr in the same quarter last year. Sequentially, it spiked 53% from INR 32.70 Cr. As a result, EBITDA margin improved 10 percentage points to 28% during the quarter under review from 18% in Q3 FY24.

Operating revenue surged 27% to INR 176.21 Cr during the quarter under review from INR 138.58 Cr in Q3 FY24. Sequentially, it rose 14.3% from 154.20 Cr.

Including other income of INR 16.72 Cr, total revenue stood at INR 192.94 Cr in the December quarter of FY25 as compared to INR 151.85 Cr in the corresponding quarter last year.

In its Q3 FY25 presentation to investors, CarTrade said that all three of its business verticals delivered the highest-ever revenue and profits. Consumer business contributed INR 67.99 Cr to CarTrade’s operating revenue in Q3 FY25, up 38% YoY.

The auto portal raked in INR 58.57 Cr from its remarketing business in the quarter ended December 2024, a 27% YoY increase.

Revenue from the classifieds business (OLX India) surged 15% YoY and 4.5% QoQ to INR 49.77 Cr in the reported quarter.

“All three of our business verticals delivered their highest-ever revenue and profits, further cementing our leadership in the market. Revenue for 9MFY25 grew by 32%, and our EBITDA surged by 100%, leading to PAT zooming to INR 99 Cr. Our profit growth outpaced revenue growth, reflecting the strong operating leverage in play,” said Vinay Sanghi, founder, chairman and managing director of CarTrade. 

Where Did CarTrade Spend In Q3?

The company’s topline growth overshadowed the rise in expenses in the quarter ended December 31, 2024. CarTrade spent INR 126.13 Cr in Q3 FY25, up 11% from INR 113.23 Cr it spent in the third quarter of the previous fiscal year.

Employee Cost: The company spent INR 73.05 Cr towards employee benefit expenses in Q3 FY25, up 8% from INR 67.56 Cr in the year-ago quarter.

Marketing Expenses: The spending under this head increased 14% to INR 8.08 Cr during the quarter under review from INR 7.12 Cr in Q3 FY24.

Other Expenses: CarTrade incurred expenses of INR 44.99 Cr in the December quarter of FY25, up 17% from 38.54 Cr in the year-ago period. However, the company did not give a breakup of these expenses.

Following the company’s Q3 earnings, CarTrade shares skyrocketed 18.65% in early trading hours to INR 1,624.20 apiece on the BSE. At 2:00 PM, the stock was quoting INR 1,574, up 15% from the previous close.