Multi-channel auto platform CarTrade Tech reported a 118.42 percent jump in quarterly net profit for the July-September quarter against a profit of Rs 40.5 crore in the corresponding period a year ago.
The standalone net sales stood at Rs 37.08 crore in September 2022 up 17.46 percent from Rs 31.57 crore in September 2021. Banwari Lal Sharma, CEO of Consumer Business of CarTrade Tech, told CNBC-TV18 that the sales are expected to be grow more this year owing to a lesser-than-usual fall in sales that is usually seen in the Indian market post the festive season. This year, the fall after festive season has been 9 percent, Sharma said.
“In fact, one interesting thing happened, which I now see in the car business, especially the festive curve, the seasonality curve, flattening a little. So typically, Shraddha period which is before Diwali — those 15 days, people would not buy cars, they would just sit tight and then they would buy once the festive is over during Navaratri, Dussehra, and then Dhanteras. It didn't happen this year at all. The entire Shraddha period went by like it never happened,” Sharma said.
He added that the company is not looking out for investments and acquisitions and will wait for someone with a matching wavelength. “We don't want to go out and invest in companies, which have nothing to do with the business that we are in. That's the fundamental thought. And until and unless we find a synergy of that order, wherein the company, the management, the people, are aligned with our thoughts, we will be very patient,” said Sharma.
Although from a revenue perspective CarTrade Tech has been strong, it has been weak on the Street, with its shares constantly falling. CarTrade Tech got listed with a 1.11 percent discount to the issue price of Rs 1,618 on August 20, 2021. Since then, the stock has plunged over 64 percent.
Currently the stock is trading 0.8 percent down from the previous close at Rs 491 on the BSE. The stock was trading 0.09 per cent lower at Rs 572.40 on BSE today, November 18. In the year so far, the stock has lost over 41 percent and fallen 14.7 percent in one month.
On the growth perspective Sharma expects to see good results due to diversification and prospects of growth in the new car business.
“We are in a gamut of businesses within that industry. So the new car business is only a part of our business. We have a new bike industry and we also cater to the used car industry. I can tell you that the used car business for us is the fastest growing one. India should grow at about 9-11 percent on the new car business for a couple of years, at least,” he added.
