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CarTrade Posts Rs 176 Cr Revenue and Rs 45.5 Cr Profits in Q3 FY25

Automobile classifieds platform CarTrade has revealed a notable financial performance for the third quarter of the ongoing fiscal year (Q3 FY25). With significant revenue growth and a dramatic turnaround in profits, the company’s results signal a positive shift in its business trajectory.

The Mumbai-based platform posted a 26% year-on-year growth in revenue, reaching Rs 176 crore in Q3 FY25, compared to Rs 139 crore during the same quarter in the previous fiscal year. This performance highlights CarTrade’s resilience in an ever-competitive market. The company also managed to transition from a net loss of Rs 23.5 crore in Q3 FY24 to a solid profit of Rs 45.5 crore for the third quarter of FY25.

A Closer Look at CarTrade’s Revenue Streams

The strong performance in Q3 FY25 was fueled by growth across CarTrade’s three key business segments: Consumer, Remarketing, and Classifieds. Revenue from the consumer segment surged to Rs 68 crore, a significant rise from the Rs 50 crore posted in the previous year’s third quarter. This represents a jump of 36%. The Remarketing segment earned Rs 58 crore, while the Classifieds segment contributed Rs 50 crore to the total revenue. Together, these segments formed the core of CarTrade’s business during the period.

CarTrade Q3 FY25 financial

Additionally, CarTrade saw an uptick in non-operating revenues, adding Rs 17 crore from its other business activities, bringing total revenue to Rs 193 crore for Q3 FY25. This is up from Rs 152 crore in the same period of FY24. The company’s diversified income streams appear to be paying off, with the mix of both operational and non-operational revenue strengthening its overall financial position.

Controlled Spending Amid Growth

On the expense side, CarTrade maintained disciplined spending. Employee benefit expenses accounted for 53% of total costs, growing by a modest 7.3% to Rs 73 crore during Q3 FY25. This increase is primarily attributed to normal business expansions, as well as share-based compensation expenses totaling Rs 3.36 crore. Other operational expenses grew by 12% to Rs 140 crore, from Rs 125 crore in Q3 FY24, which reflects the company’s expanding activities and overall operational costs.

Despite the rise in expenses, CarTrade’s profitability surge indicates that the company has been able to keep its costs under control relative to its revenue growth, boosting its bottom line significantly.

Profitability Turnaround: From Loss to Gain

CarTrade’s remarkable turnaround in profitability is perhaps the most striking highlight of Q3 FY25. The company managed to report a net profit of Rs 45.5 crore, a dramatic improvement over the Rs 23.5 crore loss it recorded during the same period last year. This is a clear reflection of the company’s ability to generate greater revenues while managing its expenses efficiently.

The shift from a loss to profit is especially notable considering CarTrade’s early struggles during the pandemic. The company’s consistent efforts to diversify and innovate within the automotive space, combined with careful cost management, seem to have played a pivotal role in this improvement.

Stock Market Performance and Market Capitalization

As a result of the impressive quarterly results, CarTrade’s stock price jumped by 4.78%, trading at Rs 1,433.3 as of 12:47 IST. This reflects investor confidence in the company’s strong financials and market outlook. With a market capitalization of Rs 6,789 crore (around $800 million), CarTrade’s valuation has seen notable growth, further signaling investor optimism for the future.

The company’s improved financial results and stock market performance are likely to boost its standing in the Indian automobile classifieds sector. As CarTrade continues to innovate and expand its services, stakeholders will be keeping a close eye on whether this upward trend can be sustained.

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