- The standalone business of CarTrade Tech houses its consumer group business which are websites (CarWale, CarTrade and BikeWale).
- The standalone revenue from operations for the company increased by 42% YoY to Rs. 42 crores. But on a QoQ basis, the revenue for the company declined by -10%.
- EBITDA for the company turned positive during Q1FY23. The EBITDA for the company stood at Rs. 3 crores.
- The company has incurred an ESOP cost of Rs. 5.32 crores during Q1FY23.
- The company registered a profit of 1.7 crores.
- The consolidated business of the CarTrade Tech business consists of the Standalone consumer group businesses like Carwale, Bikewale and CarTrade.com. The business also contains other operations such as CarWale, abSure, One-Click Purchase and Auto Finance.
- There is also the remarketing business which comes under the consolidated umbrella. These businesses are Shriram Automall, CarTrade exchange and Android Auto.
- The consolidated business revenue stood at Rs. 93 crores, a YoY growth of 47% but a QoQ decline of -12%.
- The company reported an EBITDA of Rs. 12 crores for Q1FY23.
- The company reported a profit of Rs. 2.6 crores for this quarter.
- As per the company’s presentation, it is the number 1 car and two-wheeler auto portal in India.
- Automalls and abSure outlets have reached 180+ physical locations.
- Average monthly unique visitors in Q1FY23 stood at 3.1 crores. Organic unique visitors for the company stood at 84.68% in the quarter.
- The company has a debt-free balance sheet with cash on the balance sheet standing at Rs. 1,000 crores.
- Number of vehicles for auction stood at 3,23,693 units, a YoY growth of 25.2% and a QoQ decline of (8%).
- The number of vehicles sold through the auction stood at 74,603 units, a QoQ growth of 2.7% and YoY growth of 18.4%.
- The company has lined up Rs. 750 crores to conduct strategic acquisitions and investments in the automotive ecosystems.
Earnings call Highlights
- Cost escalations for employees have gone up by 25% on a YoY basis. Employee cost is mostly not variable and does not see a significant jump in futures. It has increased now due to wage escalation.
- Remarketing business has grown by 52% YoY.
- Q1 is normally lower than Q4FY22. Some seasonal factors in Q1 make it usually the least of the quarters.
- New vehicle business grew by 48% and used car media business has grown by 187% (which now contributes 16% of the consumer group business). Total 67% of revenues come from used vehicles when Shriram auto mall is included.
- For the consumer group - OEM grew by 51% and dealer business grew by 76% on YoY business. Dealer business now contributes 40% to standalone revenues.
- AbSure outlets at 57 across 34 cities. Intend to go to 100 locations this year for Absure and currently is at 57.
- Auction conversion for Q1FY23 stood at 21%.
- The company is looking for acquisition opportunities.
- The company is focusing heavily on the operations of AbSure locations as compared to the last year when the company was focused on the rollout of the business.
- Car Industry sold 9,00,000 vehicles in last quarter. The Supply chain and semiconductor is getting better but has not yet fully recovered. The next 3-6 months of supply should be available. Easing of supply chain constraints is a benefit to the business on the new car side.
- Do not see costs increase in the proportion of revenue increase in the next few quarters. Hence margins can improve.
- Used car market is currently at 50-60 lakh and growing over the next five years.
- Traffic and revenues are not really correlated. Revenue is majorly dependent on what manufacturers and dealers are spending. 40% of revenue is dealer driven. Manufacturers spend on leads, and advertisements and some have conversion-based models. Dealers spend on leads and subscriptions.
- Absolute revenue of AbSure is currently insignificant and it is only a 12–14 months-old business. Will take 2-4 quarters to focus on revenues and margins.
- The OEM business has grown by 51% despite of the semiconductor shortages.
- Revenue from the valuation and inspection business is Rs. 4.6 crores in Q1FY23.
DISCLOSURES UNDER SEBI (RESEARCH ANALYST) REGULATIONS, 2014:
Yadnya Academy Pvt. Ltd. (InvestYadnya) is registered with SEBI under SEBI (Research Analyst) Regulations, 2014 with registration no. INH000008349.
Disclosure with regard to ownership and material conflicts of interest:
1. Neither Research Analyst nor the entity nor his associates or relatives has any financial interest in the subject Company;
2. Neither Research Analyst nor the entity nor its associates or relatives has actual /beneficial ownership of one per cent or more securities of the Subject Company, at the end of the month immediately preceding the date of publication of the research report or date of public appearance;
3. Neither Research Analyst nor the entity nor its associates or his relatives has any other material conflict of interest at the time of publication of the research report or at the time of public appearance.
Disclosure with regard to receipt of Compensation:
1. The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
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