Mumbai, Aug 6 (SocialNews.XYZ) Varroc Engineering on Thursday reported a 26.5 per cent year-on-year (YoY) decline in consolidated net profit for the June quarter (Q1 FY27), as margin pressure and an exceptional item weighed on earnings despite robust growth in revenue and operating profit.
The auto technology company posted a consolidated net profit of Rs 77.3 crore for the quarter ended June 30, down 26.5 per cent from Rs 105.1 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
The decline in profitability came despite a sharp increase in revenue and operating earnings, with the company indicating that an exceptional item impacted the bottom line during the quarter.
Revenue from operations rose 29.9 per cent year-on-year to Rs 2,634.2 crore, compared with Rs 2,027.6 crore a year earlier, it said in its regulatory filing.
Operating performance also improved, with EBITDA increasing 14 per cent to Rs 221.9 crore from Rs 194.6 crore in the year-ago quarter.
However, EBITDA margin narrowed to 8.4 per cent from 9.6 per cent.
The company's electric vehicle business remained a key growth driver during the quarter. Revenue from EV models accounted for around 16 per cent of total revenue and surged 87 per cent year-on-year.
Varroc also reported broad-based growth across geographies. Revenue from its India business increased 28.6 per cent from a year ago, while overseas operations registered a stronger growth of 45.6 per cent.
The company said it continues to focus on innovation and product development, noting that it has filed more than 135 patents across various automotive technologies.
Segment-wise, performance was mixed on a sequential basis. Revenue from the two-wheeler segment rose 2.7 per cent quarter-on-quarter, while the three-wheeler business grew 3.4 per cent.
However, revenue from the passenger vehicle segment declined 7.5 per cent, and commercial vehicle revenue fell 16.9 per cent during the quarter.
Shares of Varroc Engineering ended 1.7 per cent higher at Rs 730 on the National Stock Exchange ahead of the company's earnings announcement.
Source: IANS
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