Simplifying India's Auto Journey
We at CarTrade are truly grateful to our 3 crores monthly unique consumers and to allour dealer and_OEM partners who are part of_our ecosystem. We are building a futurethrough technology to provide a seamless_one-click experience to all_our users.
As we embark on our journey as a listed public Company it_is with great joy that Ipresent to you CarTrade Tech's very first Annual Report shedding light on our performancein FY22. This will provide our stakeholders a better insight into the operations andprofitability of the Company and we look forward to continuing this endeavour each yearwith utmost levels of transparency.
Eleanor Roosevelt had once said_"The future belongs to those who believe in thebeauty of their dreams". When we kickstarted our journey in 2009 getting listedseemed like a far-fetched dream. Today it is a matter of immense pride that we havebecome the first automotive digital marketplace to be listed in India. We began with theaim to create a lasting impact on the automotive_industry. Withfitime effort and anintricate understanding of our domain we were able to successfully achieve this goal.Over the years our_dream has evolved into building a connected automotive ecosystem thatencompasses consumers manufacturers dealers banks and other stakeholders. While wehave come a long way we recognise there is still much more exciting work to do to fullyachieve our vision.
We have always believed in attaining profitable growth' while delivering afantastic experience to our customers.
This belief has become a reality with our agile business model and the relentless hardwork and commitment of the CarTrade Tech family. The pandemic presented unprecedentedchallenges over the last two years. Supply chain disruptions led to a shrinking marketsize and significant degrowth. Despite these challenges we were able to smoothly navigatetowards a robust financial performance owing to the immense resilience displayed by ourpeople. I_want to express my deepest gratitude to every member as their contributions havemade it possible for us to consistently improve our customer experience. It is theirpassion and energy that keeps me inspired and fuels my purpose.
THE YEAR IN REVIEW
I am pleased to announce that in FY22 we recorded healthy and profitable growthachieving our highest ever revenue of Rs358 crores growing y-o-y at 28%. We also clockedthe highest ever adjusted EBITDA of Rs97 crores growing y-o-y at 25%. Our adjusted PATstood at Rs56 crores.
Our revenue growth was matched by our EBITDA growth reflecting the success of ourbusiness strategy. During the year we also incurred a 19% y-o-y increase in our employeecosts. This was mostly owing to salary increments and initiatives taken towards nurturingour employees.
Our marketing costs for this year were less than 7% of our revenue a testament to thehigh brand affinity of our Company. We concentrated on growing our business across ourconsumer platformsCarWale CarTrade and BikeWalegarnering 3 crores averageunique visitors every month with over 86% of them being organically generated. Ourcommitment to improving our customers' experience has made our brand synonymous withtrust quality and reliability.
On the remarketing business side our listings have increased to 12+ lakhs across 120Automalls and online auctions. Our proprietary technology is built to cater to the largevolumes of phygital auctions across all vehicle types supply sources and geographies.
We will be committed to our agenda of creating profitable growth and leveraging ouragile and scalable business model. With an investable surplus of Rs1000+ crores we willcontinue to remain debt-free. Our profitability and surplus cash allow us to invest inwidening our offerings and thereby serving our customers better.
CAPITALISING ON TRENDS TO CREATE A DIGITAL ECOSYSTEM
The pandemic brought many headwinds to the industry but it also accelerateddigitalisation on a large scale leading to an evolution in consumer dynamics. The entirevehicle buying journey has seen a structural shift with an increasing number of buyersusing digital platforms for pre-purchase research on pricing comparisons dealerdiscovery financing options and other value-added services. The_pastfitwo years have alsoseen an increase infithe amount of sellers using online platforms for selling theirvehicles via price discovery and identification of potential buyers. We at CarTrade Techwere well-poised to capitalise on the emerging opportunities brought about by theevolvingfitrends within the automobile space.
We have made considerable progress on our digital initiativefithat enables ourcustomers to buy a vehicle through our one-click' experience. To further our valueproposition we_have partnered with banks and other financial institutions to help ourcustomers get loan approvals in a convenient manner. During the year we also launched ourCarWale abSure platform which offers quality handpicked used cars thoroughly vetted byCarWale. The_platform provides 4s promisesSure Secure Safe Smart. Thesefivehiclesare sold on our online platforms as well as through our 47 outlets across the country. Weplan to expand to 120+_outlets by FY23.
Backed by our robust business model we are looking to expand our operations andincrease our value proposition significantly in the coming years. As a continuouslyevolving auto platform we are committed to meeting the needs of our consumers dealersand OEMs. We made considerable progress in achieving our Company's mission and willcontinue on this path in the future.
I am thankful to all our stakeholders who have extended their unwavering support to allour endeavours. I am truly grateful to our 3 crores monthly unique consumers who haveshown faith in our brand. Their trust has helped us retain our #1 position in searchpopularity on Google Trends much ahead of our key competitors. I also wish to extend mygratitude to our new vehicle and used vehicle_dealer partners who will always remainintegral buyers and sellers on our platform. Auto manufacturers banks and NBFCs are alsokey pillars within our ecosystem enabling us to provide unique offerings to ourcustomers. This is just the beginning and there is tremendous passion and belief atCarTrade Tech. I assure all our stakeholders that we will remain on track and consistentlydeliver on our promises creating shared value for the longfiterm focused on customerexperience.
|Warm Regards |
|Vinay Vinod Sanghi |
|Chairman and Managing Director |