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The company posted good revenue growth but no profits to show due to esop charges |CarTrade Tech Q3FY22 Results and Earnings Call Highlights

The company posted good revenue growth but no profits to show due to esop charges | CarTrade Tech Q3FY22 Results and Earnings Call Highlights

Published on 31 January 2022 .Views 11 .Comments 0
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Financial Results

  • 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 12.4% YoY to Rs. 34 crores. The QoQ growth for the same was 9%.
  • Operating profit for the company turned negative during Q3FY22. The operating loss for the company stood at Rs. (35.6) crores.
  • The company has incurred a non-cash, non-recurring and exceptional adjustment of Rs. 140 crores for the ESOPs granted during FY21. This has led company to book operating loss for this quarter. Company claims that this exceptional charge will affect the P&L during FY22 only.
  • The company faced a loss of Rs. (29.4) crores during the quarter.

  • The company posted highest ever quarterly revenue of Rs. 102 crores.
  • The consolidated business includes the above mentioned website businesses and the remarketing business (auction and other related businesses).
  • The consolidated revenue from operations for the company increased by 14.7% YoY to Rs. 89 crores. The QoQ growth for the same was 14%.
  • Operating profit for the company turned negative during Q3FY22. The operating loss for the company stood at Rs. (14.4) crores.
  • The loss has been incurred due to the above mentioned exceptional charges of Rs. 140 crores.
  • The company faced a loss of Rs. (23.4) crores during the quarter.

Business Highlights

  • Number of vehicles for auction increased to 3,26,319 units, a YoY growth of 53% and QoQ growth of 9%.
  • The number of vehicles sold through the auction stood at 72,639 units, a QoQ growth of 14% and YoY growth of 60%.
  • The company has lined up Rs. 750 crores to conduct strategic acquisitions and investments in the automotive ecosystems.

Earnings call Highlights

  • Average monthly unique visitors in Q3FY22 were 3.1 crores. Organic traffic in the same was 86.2% of the total unique visitors.
  • Vehicle auction annualised stood at 13 lakhs.
  • The company estimated the FY23 charge for the ESOPs would be close to Rs. 20 crores.
  • Continues to maintain No.1 position in cars and bikes as per Google Trends.
  • The Consumer Group and Remarketing businesses contribute majority towards the revenues.
  • Auto Finance product available on the Morris Garages dealership websites.
  • Started putting out Carwale Absure (certified) outlets.
  • Shriram Automall which is the auction business has tied up with Ashok Leyland and Bharat-Benz.
  • The industry has degrown by 15% in 9MFY22 but the company has shown growth in revenue for the same period.
  • Slight decrease in take rate as more business has moved online.
  • In remarketing business, no increment during last quarter. To make up for the same, higher increment was done and increase in spending has led to increase in other expenses by 45% YoY.
  • The company aims to reach 200 outlets of Carwale Absure in 2 years.
  • The auto finance is connected with 9 banks and facilitates the customers to get loans for new and used vehicles.
  • Google Trend uses Brand affinity score showing search popularity and other websites show total traffics.

ESOPs

  • The total ESOP cost has been Rs. 140 crores for 9 months and would be Rs. 180 crores for 12 month period.
  • Rs. 185 crores ESOP charge for FY22. Rs. 20 crores ESOP charge for next year. It would be same or lower going forward.
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