The online auto platform had reported a loss of INR 35.35 Cr in July-September quarter of 2022
Operating revenue rose 16% YoY to INR 87.89 Cr in Q2 FY23
Led by the decline in employee benefit expenses, CarTrade Tech’s total expenses declined 25% YoY to INR 88.74 Cr
Online auto platform CarTrade Tech reported a net profit of INR 5.58 Cr in the September quarter of the financial year 2022-23 (FY23) as against a net loss of INR 35.35 Cr in the same quarter last year, helped by growing traction on its platform and cost-cutting measures.
On a sequential basis, the profit rose 68% from INR 3.32 Cr reported in Q1 FY23.
CarTrade also saw a 16% year-on-year (YoY) increase in its operating revenue to INR 87.89 Cr in Q2 FY23 from INR 75.51 Cr reported in the same quarter last year.
The startup, a multi-channel auto platform operating under several brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, and more, earned a total revenue of INR 102.49 Cr in the reported quarter versus INR 86.03 in Q2 FY22.
While the rise in its top line continued in Q2, it is pertinent to note that the company has cut some costs that helped improve its bottom line.
Its total expenses declined 25% YoY to INR 88.74 Cr in Q2 FY23 from INR 118.69 Cr reported in the same quarter last year.
The decline was driven by a sharp drop in employee benefit expenses, including ESOPs, which stood at INR 52.59 Cr in the quarter as against INR 83.24 Cr in Q2 FY22. However, this was a 7.7% increase sequentially from INR 48.8 Cr spent on employee benefit expenses in the previous quarter.
Meanwhile, CarTrade’s depreciation and amortisation expenses grew 9% YoY to INR 7.13 Cr, while other expenses rose 7.4% YoY to INR 27.12 Cr in the quarter.
Speaking about the company’s outlook, Vinay Sanghi, chairman and founder of CarTrade Tech, said, “Our profitability and surplus liquidity of over INR 10 Bn allow us to invest in widening our offerings towards providing a seamless phygital experience to all our users.”
CarTrade is also working on a slew of new product initiatives to enhance the process of digital buying and selling of vehicles and is enabling a one-click experience on its platforms in collaboration with the original equipment manufacturers (OEMs), banks, NBFCs, dealers, insurance companies, and other players in the ecosystem, Sanghi said.
During Q2, the average monthly unique visitors on CarTrade’s platforms stood at 37 Mn as against 34 Mn in the corresponding quarter of FY22.
The startup also got over 3 Lakh listings for auction on its platform during Q2 FY23 while it sold 63,989 vehicles via these auctions.
Shares of CarTrade ended about 4% higher at INR 608.40 on the BSE on Friday.