Auto Portal Small-cap Stock Sky Rockets with 132 per cent Profit Growth; Triggered 20 per cent Upper Circuit

CarTrade Tech zoomed 19.04 per cent on Friday to trade at its 52 weeks high amid positive results and staggered growth in revenue. A surge in volume occurred, experiencing an increase of over 25.31 times on November 10, 2023.

A prominent player in India's online classifieds and auto auction sector has reported Strong financial results for the second quarter and half-year ending September 30th, 2023. In Q2FY24, the company demonstrated substantial growth in Net Revenue, reaching Rs 147.94 crores, marking an impressive 44 per cent increase compared to the same quarter in the previous fiscal year. This remarkable surge reflects the company's effective strategies and robust operational performance. Similarly, the Profit After Tax for Q2FY24 witnessed an extraordinary year-on-year growth of 132 per cent, soaring to Rs 12.97 crores.

For the first half of the fiscal year 2024, the company recorded an impressive year-on-year net profit growth of 198 per cent, reaching Rs 26.48 crores.

CarTrade Tech zoomed 19.04 per cent on Friday to trade at its 52 weeks high amid positive results and staggered growth in revenue. A surge in volume occurred, experiencing an increase of over 25.31 times on November 10, 2023. In the last 5 years, the company has consistently delivered an impressive compound annual growth rate of 30.6 per cent in profits and is almost debt-free.

Operational highlights for Q2FY24 included an average of 70 million monthly unique visitors, with over 90 per cent coming organically. Shriram Automall, part of CarTrade Tech, reported 1.2 million annualized listings for auctions and a sales volume of 1,05,263 for the first half of the fiscal year. CarTrade Tech has expanded its physical presence to 350+ locations, including Automalls and abSure.

Management Commentary

Commenting on the remarkable performance, Mr. Vinay Sanghi, Chairman and Founder of CarTrade Tech, emphasized the significance of the quarter, marked by the acquisition and integration of OLX India. Sanghi highlighted the company's strategy to enhance unit economics and fortify its position as the country's leading auto portal, classifieds platform, and auto auction platform. The combined platforms attract around 70 million unique visitors monthly, with 90 per cent originating organically, showcasing the strength of CarTrade Tech's brands and commitment to delivering an outstanding customer experience.

About Company

CarTrade Tech Ltd. operates under various brands such as CarWale, CarTrade, Olx, Shriram Automall, BikeWale, CarTrade Exchange, and Adroit Auto, facilitating a seamless and efficient buying and selling experience for new and used automobiles across all vehicle types and value-added services.

Disclaimer: The article is for informational purposes only and not investment advice.