Revenue growth due to increase in auctions but One-time noncash charge affects the profits | CarTrade Tech Q2 FY22 Result Analysis
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2 years ago
Financial Results
Revenue from operations for the company stood at Rs. 78 crores in Q2FY22. When compared with 58 crores in Q2FY21, the company registered a YoY growth of 35%. On QoQ basis the growth stood at Rs. 46%.
Other income for the company stood at Rs. 10.5 crores as compared to Rs. 6 crores in Q2FY21, a YoY growth of 75%.
EBITDA for the company stood at a negative (-22.4) crores as compared to Rs. 16.4 crores in Q2FY21. The EBITDA in Q1FY22 was Rs. (-37.9) crores.
The losses for the company stood at Rs. (-37.7) crores as compared to a profit of Rs. 7.1 crores in Q2FY21.
The negative EBITDA and PAT for the quarter is due to a non-cash expense. Exceptional and recurring non-cash adjustment of Rs. 93 crores for ESOPs granted in FY21 has been accounted in Q2FY22 and Q1FY22.
This has led to Net loss after tax of Rs. 81 crores for H1FY22.
Business Highlights
Average monthly unique visitors stood at 3.4 crores on the website. Out of those, 86.68% traffic was organic, a growth of 34% on YoY basis.
Number of vehicles listed for auction increased by 73% YoY at 300,671.
Number of vehicles sold via auction grew by 104% YoY at 63,533.
The CarWale abSure was launched by the company in 9 cities. This will enable the company to deliver a user friendly world class online offline shopping experience for buyers and sellers of cars.
Earnings Call Highlights
Adjusted EBITDA for the company stood at Rs. 24.5 crores. Adjusted EBITDA margin for the company stood at 28%.
Total Addressable Market for the company is about $14.3 billion.
Ad Spends: $1.8 billion.
Auto Finance: $1.4 billion.
India is on the way to be the third largest auto market by 2025.
Auction volume is currently annualized volumes of 1.2 million units.
Google Trends show the business according to brand searches.
The company is a dominant player on the bike side with their BikeWale portal.
57% of the revenue comes from remarketing business. The rest comes from core new car and used car platforms. New car business is the large part among the two.
The company would like to focus on use commercial vehicles business as well.
56% of EBITDA comes from SAMIL (Shriram Auto Mall). The income in SAMIL is transaction and commission income.
43% of revenue comes from media, from manufacturers and dealers.
Manufacturers, dealers and stakeholders spend on 13%-14% of all money spent on digital. In developed countries it is 35%-40% range.
