Varroc Engineering Limited reported its financial performance for the third quarter ended December 31, 2024, reflecting strong revenue growth amid significant profitability challenges due to rising costs and one-time expenses.
Key Financial Highlights (Q3 FY25):
- Revenue from Operations: ₹2,075.2 crore, up 10% from ₹1,884.5 crore in Q3 FY24, driven by robust demand in core segments and international markets.
- Total Income: ₹2,077.86 crore, compared to ₹1,893.16 crore in the year-ago period.
- Net Loss: The company reported a net loss of ₹451.83 million, against a profit of ₹578 million in Q3 FY24. The loss was attributed to increased material costs, a one-time loss of ₹91 crore, and higher depreciation expenses.
Expense Overview:
- Total Expenses: ₹2,011.76 crore, up from ₹1,847.38 crore YoY, highlighting the pressure on operational efficiency.
- Cost of Materials Consumed: ₹1,331.96 crore, compared to ₹1,204 crore in the same period last year.
- Depreciation and Amortization: ₹805.43 million, marginally down from ₹829.74 million YoY.
- Tax Expense: The company incurred a tax expense of ₹20.4 crore, a significant shift from the tax write-back of ₹313 crore in the previous year.
EBITDA and Margins:
- EBITDA: ₹186 crore, up 6% compared to ₹175 crore YoY.
- EBITDA Margin: The margin stood at 9%, slightly lower than 9.3% in Q3 FY24, reflecting higher input costs and expenses.
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