CarTrade Tech, a leading auto marketplace in India, has reported a significant year-on-year (YoY) growth in the second quarter (Q2) of the financial year 2023-24 (FY24).
The company's consolidated profit after tax (PAT) surged 132% to Rs 12.96 crore from Rs 5.57 crore year-on-year, despite a 4% drop from Rs 13.51 crore in Q1 FY24. Q2 FY24 revenue hit a high of Rs 314.33 crore, a significant rise from Rs 87.88 crore in Q2 FY23.
The acquisition of OLX India in August significantly influenced CarTrade's financial results. Including OLX's figures, the company's operating revenue jumped to Rs 97.06 crore, a 10% YoY growth, while PAT increased by 164% to Rs 14.74 crore.
Vinay Sanghi, Chairman and Founder, CarTrade Tech, said, “This has been an important quarter for CarTrade Tech, highlighted by the acquisition and ongoing integration of the OLX India business. Our strategy has involved restructuring the OLX operations to improve our unit economics and ensure that the classifieds business enhances and supports our consumer group business effectively"
Total expenses, including those from OLX, escalated by 254% to Rs 314.74 crore in Q2 FY24, primarily due to the purchase of stock-in-trade and inventory changes.
Employee benefit expenses, including ESOP costs, were recorded at Rs 65.94 crore. The company also reported a significant increase in 'other expenses', which more than doubled to Rs 54.49 crore compared to the previous year.
CarTrade's strategic moves have fortified its market position, making it a leading entity in auto portals, classifieds, and auto auctions in India.
The platforms attract around 70 million unique visitors monthly, with 90% originating organically. Operational metrics showed a decline in auction listings and volume on its Shriram Automall platform, but the company maintains a strong physical presence with over 350 stores nationwide.