CarTrade Tech (CARTRADE) Q1 24/25 earnings summary

Executive summary

• Operating revenue grew 64% year-over-year, with overall revenue up 46% and profit after tax rising 69% in Q1, marking the highest-ever Q1 revenue and EBITDA for the company.

• The company remains debt-free, holding a cash balance of INR 782 crores, and platforms reached over 70 million unique monthly visitors with more than 100 million app downloads.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by statutory auditors with no qualifications.

Financial highlights

• Q1 consolidated revenue from operations was ₹14,117.78 lakhs, up 64% year-over-year, with PAT at ₹2,289.86 lakhs, up 69% year-over-year.

• Adjusted EBITDA for Q1 was ₹4,280.83 lakhs, up 38% year-over-year, with margins improving to 27%.

• Standalone operating revenue increased 18%, with costs down 2%, resulting in a 700% EBITDA increase and margin improvement from -3% to 14%.

• Segment revenues: Consumer ₹5,046.26 lakhs, Remarketing ₹4,913.30 lakhs, Classifieds ₹4,668.13 lakhs.

• Basic EPS (consolidated) for the quarter was ₹4.72, up from ₹2.77 year-over-year.

Outlook and guidance

• Management is optimistic about the next 12-24 months, expecting continued revenue and margin growth, leveraging a large organic user base to drive monetization and lower acquisition costs.

• No significant increase in marketing spend is planned, as organic traffic and brand affinity remain strong.

• Focus on expanding auction and classifieds platforms to capture market share.

• Sobek Auto India Private Limited will focus on growing its Classified business (Olx.in) after discontinuing its C2B operations due to unit economics challenges.