Varroc reports Rs 55 crore net profit during Q1FY24 on strong demand and Government subsidies
The company's revenues grew by 10% to Rs 1792.5 crore during Q1 FY24 as against the corresponding period last year.
Varroc Engineering (Varroc), a global tier-I auto components group, reported a consolidated net profit of Rs 55 crore during Q1 FY24 as against a loss reported during a similar period last year, on the back of strong performance from domestic and export markets in addition to receiving certain incentives from the government.
The company's revenues, on the other hand, grew by 10% to Rs 1792.5 crore during Q1 FY24 as against the corresponding period last year.
Tarang Jain, CMD, Varroc, said, "Speaking about the global economy, it has been more resilient despite monetary tightening by most of the central banks as core inflation remains above the target levels. Despite turmoil in the financial markets, we see a strong labour market and consumption in developed economies."
"The Indian economy, on the other hand, has sustained its growth momentum in FY 2024 so far. Core inflation has started to moderate, which is helping the RBI not to increase the interest rate further, thus supporting the economy," he added.
As per the company management, the ongoing monsoon and festive season will be key to watching out for the autautomobil sector to continue its momentum. The reduction in FAME II subsidies as of June 1, 2023, impacted EV volumes sharply but the company remain cautiously optimistic about the recovery in coming months.
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