Varroc bags Rs 2547 crore new orders during H1FY23, with top 5 EV makers contributing 34% of total

Aurangabad automotive supplier, Varroc Engineering, has bagged new orders worth around Rs 2547.6 crore during the first half of current fiscal year, out of which a third of its incremental business comes from top five prominent electric customers alone, a top company executive said.

Tarang Jain, CMD of Varroc Engineering said, " We continue to have strong order wins for new business in the first half of FY23 across business units enabling our future growth. During H1 FY23, lifetime revenue from new order wins is Rs.25,476 million. Out of this, business wins from 5 prominent EV customers is Rs.8,676 million". 

Announcing the Q2 earnings, Varroc said the company’s profit during the quarter declined by Rs 19.1 crore during Q2FY23, on back of notional forex losses and reversal of deferred tax assets of this year as well as previous year primarily due to lower divestment consideration.  

Its consolidated revenues however grew by 21.2 percent year on year to Rs 1834.1 crore led by industry growth and new products in Q2FY23.

Reviewing the Q2 earnings, Jain said, "This is the highest ever revenue generated by our entities in the continued operations in any quarter. We improved our profitability on a sequential basis with improvement in EBITDA margin by 100 basis points. This is the second consecutive quarter when the EBITDA margin has expanded, and it came in at 9.2 percent."

Varroc Engineering, with end-to-end capabilities across design, development and manufacturing for two-wheeler, three-wheeler, passenger vehicles, commercial vehicles, and off-highway vehicles, provides electricals-electronics, polymers, metallics, and exterior lighting systems to leading OEMs worldwide.

In FY22, continuing activities generated close to Rs 5844 crore in income for the firm.

The company is key supplier to major two wheeler companies like Bajaj Auto, Royal Enfield, KTM, Piaggio, Suzuki, Ducati, Harley Davidson, Kawasaki, Yamaha, Hero Moto, Honda, M&M, Skoda Auto VW, Renault and Nissan amongst others as its leading customers.