Varroc Engineering

Varroc Engineering shares gained today after the company announced a major business win from a leading electric vehicle (EV) maker.

Auto parts supplier Varroc Engineering on Wednesday reported a consolidated Profit After Tax (PAT) of Rs 383.9 crore in the December quarter, primarily driven by a tax benefit of Rs 313.1 crore. The company had reported a consolidated PAT of Rs 21.8 crore in the year-ago period. The revenue for the quarter rose 9.4 per cent to Rs 1,884.6 crore from Rs 1,722.8 crore a year back, the company said in a statement. The massive surge in PAT was on account of tax benefit amounting to Rs 313.1 crore, it said. "The tax benefit has come as we have written off the impairment-related losses pertaining to loan given to overseas entity of four-wheeler lighting business in Europe and America," Varroc said. "Despite de-growth in overseas markets in the quarter, the overall revenue from operations grew 9 per cent year-on-year to Rs 18,846 million, the reported PBT (Profit Before Tax) was Rs 708 million, which includes profit from our joint venture of Rs 250.7 million," Varroc Engineering Ltd CMD .

Revenue from operations rose nearly 2.3% to 16.90 billion rupees, outpacing expenses, which grew 0.8%

As per the revised terms, the said transaction price was reduced from euro 600 million to euro 520 million.

State-owned insurance behemoth Life Insurance Corporation (LIC) reported a net profit of Rs 682.88 crore in the April-June quarter (Q1) of FY23, driven by its non-par business.

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 no

Will sharpen focus on domestic market, play to its strength in lighting and electrical and electronics components as part of re-aligning focus and enhancing ROCE

It has signed a Euro 600 million transaction with Compagnie Plastic Omnium

The Euro 600 million transaction will see Varroc divesting its lighting System operations in the USA, Brazil, Mexico, Poland, Czech Republic, Germany, Turkey, and Morocco

The company believes that the divestment is part of company's strategy to align its resources with the high value and high growth primary markets in China, India, and two-wheeler sector globally.

The management expects the semiconductor shortage situation to affect operations in Q2 as well

The company's global (Ex China) passenger vehicle volumes in Q4FY21 declined mainly due to severe semi-conductor shortages

However, the management sees robust demand in VLS business across regions as car manufacturers geared up their production schedules to cope with the pent-up demand

Jump in European electric car sales, better utilisation of facilities should help improve sales and profitability

The Rs 1,955-crore initial public offering, which ran from June 26 to June 28, was subscribed 3.6 times led by strong institutional demand

The price band for the issue has set a price range of Rs 965 to Rs 967 a share

The IPO comprises sale offer of up to 1.8 million shares by promoter Tarang Jain, about 16.9 million shares by Omega TC Holdings Pte Ltd and up to 1.6 million shares by Tata Capital Financial Services