On a QoQ basis, CarTrade’s PAT declined 22.7% from INR 17.49 Cr in the quarter ended March 2023 despite lower expenses, as its sales declined
Operating revenue stood at INR 86 Cr, down over 10% QoQ but up 4% on a YoY basis
CarTrade’s adjusted EBITDA rose 74% YoY to INR 30.9 Cr but declined from INR 39.83 Cr in the preceding March quarter
Auto marketplace CarTrade Technologies reported an over 300% rise in its profit after tax (PAT) at INR 13.5 Cr in the first quarter of the financial year 2023-24 (FY24) from INR 3.3 Cr posted in the corresponding quarter of the previous fiscal.
However, on a quarter-on-quarter (QoQ) basis, the startup’s PAT declined 22.7% from INR 17.49 Cr in the quarter ended March 2023 despite lower expenses, as its sales declined.
CarTrade clocked a record quarterly revenue of INR 106.9 Cr in Q1 FY24. Its operating revenue stood at INR 86 Cr, down over 10% QoQ. However, operating revenue grew around 4% YoY from INR 82.8 Cr.
CarTrade’s adjusted EBITDA (adjusted for ESOP cost) for Q1 FY24 stood at INR 30.9 Cr, a rise of 74% YoY. However, adjusted EBITDA too declined on a QoQ basis from INR 39.83 Cr.
ESOP costs during the quarter under review stood at INR 4.6 Cr as against INR 5.3 Cr in the year-ago period and INR 7.3 Cr in Q4 FY23.
Commenting on the quarterly performance, Vinay Sanghi, chairman and founder of CarTrade, said that the company’s PAT continues to outpace the revenue growth as it has an asset-light and scalable business model.
“Our robust brands manifest their strength by being leaders in Google Trends and in our huge average monthly unique visitor count of 34 Mn, 85% of which originates organically,” said Sanghi.
While this number increased YoY, visitors’ number remained unchanged from the last quarter. However, the company claims that its large customer base and resultant exposure gives OEMs and dealers the perfect platform to effectively leverage their marketing spends and enhance sales.
Founded in 2009 by ex-Mahindra First Choice CEO Sanghi and former eBay India head Rajan Mehra, CarTrade is a multi-channel auto platform which has a presence across all vehicle types and value-added services. It operates platforms like CarTrade, BikeWale, and CarWale, among others.
CarTrade said that the number of listings for auction on its platforms stood at 2.5 Lakh in Q1 FY24, while the volumes sold via auction stood at 49,112 in the quarter.
CarTrade’s total expenses declined to INR 75.9 Cr in Q1 FY24 from INR 76.3 Cr in Q4 FY23. However, expenses rose 5% YoY. Employee expenses, excluding ESOP, grew over 6% QoQ and 8% YoY to INR 46.9 Cr In Q1 FY24.
CarTrade recently acquired OLX India’s auto business for a consideration of INR 537 Cr.
Following the results, shares of CarTrade ended Thursday’s session 1% higher at INR 535 on the BSE.