Varroc Engineering’s Q1 loss narrows to Rs 85 crore, Auto News, ET Auto
Mumbai: Auto parts maker and supplier Varroc Engineering on Friday reported narrowing of net loss to Rs 84.51 crore on a consolidated basis in the June quarter. The company had posted a net loss of Rs 229.28 crore in the year-ago period, according to a regulatory filing.
Revenue from continued operations surged 36.25 per cent to Rs 1,628.28 crore in the latest June quarter. The same stood at Rs 1,194.99 crore in the corresponding quarter of FY22.
The first quarter of FY23 has started with a stable outlook for automotive on back of a forecast of a normal monsoon. The growth is visible mainly due to low base, Varroc Engineering CMD Tarang Jain said in a statement.
Semiconductor supply issues continue to impact premium two-wheeler manufacturers whereas passenger vehicle manufacturers are seeing improved supplies, he noted.
“Geopolitical issues have resulted in higher energy cost as well as food inflation which is forcing most of the central banks to hike interest rates at a pace which has not been seen in the last two decades. The operating environment for the business remains challenging,” he said.
On a sequential basis, the two-wheeler production grew 8.4 per cent as the base is turning favourable, Jain said and added the company continues to improve profitability on a sequential basis.
The company had strong order wins for new business in the latest June quarter across business units.
During the quarter under review, lifetime revenue from new orders was Rs 1,467.3 crore, including orders to the tune of Rs 483.7 crore from three electric vehicle customers.