Varroc Engineering swings to profit on strong demand in March quarter

Revenue from operations rose nearly 2.3% to 16.90 billion rupees, outpacing expenses, which grew 0.8%

The combined net profit of 20 cyclical companies in the index is expected to grow by 38.8 per cent YoY to Rs 1.01 trillion

Listen to This Article

BENGALURU (Reuters) - India's Varroc Engineering Ltd on Tuesday reported a swing to profit in the fourth-quarter, helped by growth in its automotive segment.

The automotive component company's consolidated net profit stood at 396.2 million rupees ($4.8 million) for the quarter ended March 31, from a loss of 2.85 billion rupees a year ago, it said in an exchange filing.

Revenue from operations rose nearly 2.3% to 16.90 billion rupees, outpacing expenses, which grew 0.8%.

Additionally, the board has resolved to seek enabling approval from shareholders for issuing non convertible debentures for up to 5 billion rupees.

For further result highlights, click


Also Read

Auto Expo returns after 3 years; some prominent firms to skip event

Divgi TorqTransfer Systems sets IPO price band at Rs 560-590 per share

Appliances, consumer electronics sector aim for double-digit growth in 2023

Will low exports pause the rally in auto stocks?

Bajaj Auto sales jump 7% to 331,278 units in April, exports fall 43%

Garware Technical Fibres Q4 consolidated PAT up 11% QoQ at Rs 59.6 cr

Bajaj Electricals Q4 profit up 34% YoY to Rs 52 cr, total revenue rises 12%

SJVN Q4 profit grows over two fold to Rs 17 cr, boosted by higher income

EIH's profit after tax jumps multi-fold to Rs 92 cr in March quarter

BPCL Q4 results: Net profit rises 159% to Rs 6,478 cr, revenue up 8%

Retail vehicle sales picked up during the quarter, as chip shortages eased and automakers launched more models. Analysts have flagged that supply chain issues have eased significantly, with minimal impact on production volumes. This in turn aided an increase in demand for automotive components.

Varroc has posted a revenue growth of between 15% and 36% in the last three quarters, but with a net loss for two of those quarters. Automotive companies have faced price pressures and higher costs during previous quarters, which had offset demand. The company said its two-wheeler mobility segment saw a slowed growth, as exports were impacted by geopolitical issues and domestic demand was impacted due to lower consumption in rural areas.


Valuation(next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBITDA Revenue Profit Mean # of Stock to Div

growth growth rating* analysts price yield

target** (%)

Varroc Engineering 18.51 8.24 13.93 276.85 Buy 6 0.85 --


Sona BLW Precision 50.63 29.50 32.71 46.40 Buy 16 0.96 1.16

Forgings Ltd

Motherson Sumi 34.54 22.83 15.78 36.62 Buy 11 0.88 1.10

Wiring India Ltd

Lumax Industries 13.49 8.45 10.56 23.27 Strong 2 0.84 0.67

Ltd Buy

** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT


-- All data from Refinitiv

-- $1 = 81.7800 Indian rupees


(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Varun H K)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: May 23 2023 | 4:05 PM IST

Explore News