Revenue from operations in Q4 FY23 was at Rs 1,690.06 crore, up 2.3% to Rs 1,651.99 crore in Q4 FY22. The rise in revenue was mainly due to new products and aftermarket.

The company reported a profit before tax (from continuing operations) of Rs 41.13 crore in Q4 FY23 as against a pre-tax loss of Rs 6.09 crore recorded in Q4 FY22.

Adjusted EBITDA stood at Rs 161.3 crore in the fourth quarter of FY23, registering a growth of 59.9% YoY. EBITDA margin was at 9.5% in Q4 FY23, improved by 340 bps as compared to 6.1% reported in the corresponding quarter previous year.

The company said that the EBITDA margin was favorably impacted by business mix, recovery, & operating leverage and unfavorably by employee cost.

On full year basis, the company reported a consolidated net profit (from continuing operations) of Rs 38.79 crore in FY23 as compared to a net loss of Rs 78.29 crore posted in FY22. Revenue rose 16.97% YoY to Rs 6,836.07 crore in FY23.

Tarang Jain, CMD commented, “Automobile production in India during Q4 FY23 grew on YoY basis for most of the segments, due to easing of semiconductor issues and improved economic activity. However, the industry segment from which we generate around 70% revenue i.e. 2W, saw de-growth of -3% as exports are impacted by geo-political issues and domestic demand was impacted due to lower consumption in rural areas. The early signs of increase in rural consumption and strong domestic economy are expected to augur well for a good FY24.

In India, we continue to have strong order wins for new business in FY23 across business units. During FY23, lifetime revenue from new order wins is Rs 5,178.2 crore. Out of this, business wins from 7 prominent EV customers is Rs 1,796.8 crore. The order books also reflect our effort to diversify as we see nearly 56% of lifetime order win from 4W and 44% from 2&3 wheeler.

Our strong R&D capabilities helped us in filing 15 patents in FY23 from the group, besides enabling us to commercialize new products in this financial year. During the current financial year, our businesses will continue their focus on profitability improvement, FCF generation, prudent capital deployment and debt reduction.”

Meanwhile, the company's board has approved fund raising by issuing secured/unsecured redeemable non-convertible debentures (NCDs) for an amount not exceeding Rs 500 crore in the financial year, in one or more series / tranches, denominated in Indian Rupees or in any foreign currency on a private placement basis.

Varroc Engineering design, manufacture, and supply exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle ("OHV") OEMs directly worldwide.