CarTrade Tech (CARTRADE) Q1 24/25 earnings summary

Executive summary

• Operating revenue grew 64% year-over-year, with overall revenue up 46% to ₹15,641 lakh and profit after tax rising 69% to ₹2,290 lakh in Q1, marking the highest-ever Q1 revenue and EBITDA.

• The company remains the leading automotive, used classified, and vehicle auction platform in India, with over 70 million unique monthly visitors and more than 100 million app downloads.

• The business is debt-free, holding a cash balance of INR 782 crores (₹782 crore), supporting future growth and stability.

• 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 reached ₹14,118 lakh, up 64% year-over-year; total income at ₹15,636 lakh.

• Adjusted EBITDA rose to ₹4,281 lakh, up 38% year-over-year, with margin at 27%.

• Profit after tax for the quarter was ₹2,289.86 lakh, up from ₹1,351.49 lakh last year.

• Standalone revenue grew 18% year-over-year to ₹5,046.26 lakh; standalone PAT at ₹1,234.46 lakh.

• OLX India contributed ₹1,876 lakh in revenue and ₹858 lakh in profit for Q1 FY25.

Outlook and guidance

• Management is optimistic about the next 12-24 months, expecting continued revenue and margin growth, especially as cost increments are now fully baked in.

• Focus remains on leveraging a large organic user base (over 92% organic traffic) to drive monetization and lower customer acquisition costs.

• Continued integration and growth of OLX India expected to enhance classifieds segment performance.

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

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