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 21.4% YoY to Rs. 47 crores. The QoQ growth for the same was 11%.
Operating profit for the company was negative during Q4FY22. The operating loss for the company stood at Rs. (32.8) crores.
The company has incurred an ESOP cost of Rs. 44.85 crores during Q4FY22 of which there is a non-cash, non-recurring and exceptional adjustment of Rs. 35.38 crores for the ESOPs granted during year 1. This has led the company to book an operating loss for this quarter. The company claims that this exceptional charge will affect the P&L during FY22 only.
The company faced a loss of Rs. (31.7) crores during the quarter.
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. 106 crores, a YoY growth of 15.2% and QoQ growth of 4%.
The company reported an operating loss for this quarter due to the mentioned ESOP charges.
Loss for this quarter stood at Rs. 25.7 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
There are currently 113 Automalls and 47 abSure outlets.
Other income consists of Interest income and Treasure Earnings.
Manpower cost of the company has increased due to salary hikes and not because of the hirings.
In FY23, ESOP charges would be close to Rs. 25-30 crores on an annual basis.
Standalone Revenue for Q4FY22 is the highest for any quarter (carwale, bikewale and cartrade.com)
Income in remarketing business consists of commission and auction revenue. The company is looking to bring in more platforms for remarketing business.
Company is also looking to make acquisitions in the automotive ecosystem in the form of bringing in new products.
The company aims to take abSure outlets to 120 by FY23.
Auction listing is more than the revenue due to an increase in the number of online auctions.
Standalone growth is driven by the dealer side as well as the manufacturer side.
Car industry is facing issues on the supply side.
3 crore average monthly unique visitors on the website out of which 84.2% are organic. No 1 ranking in monthly unique visitors.
The total ESOP cost has been Rs. 185.18 crores for FY22 and Rs. 45.15 crores in Q4FY22.
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
Neither Research Analyst nor the entity nor his associates or relatives have any financial interest in the subject Company;
Neither Research Analyst nor the entity nor its associates or relatives have 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;
Neither Research Analyst nor the entity nor its associates or his relatives have 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
The Research Entity and its associates have not received compensation from the subject company in the past twelve months.
The subject company is not or was not a client during the twelve months preceding the date of recommendation.