CarTrade Tech shares gain on positive Q3 results

Shares of CarTrade Tech Ltd held their own against a market slump Wednesday, a day after the automobile marketplace said it recorded its "highest ever" quarterly revenue.

Consolidated total income, excluding purchase of stock, increased 13% to Rs 115.86 crore in the December-ended financial third quarter, driving a 15% jump in adjusted after-tax profit to Rs 24.05 crore.

Cartrade shares were trading up about 3.5% at Rs 491 apiece in afternoon trading, while both the Sensex and the Nifty indices were down about 1.2%.

"In Q3 FY 23 we had our highest ever quarterly revenue at Rs 115.86 crores and highest ever quarterly adjusted EBITDA at Rs 36.60 crores," Chairman and Founder Vinay Sanghi said in statement filed with the Bombay Stock Exchange. "In the nine-month period ended December 31, 2022, on a consolidated basis, the company reported Rs 311 crores of revenues, registering a 23% Y-O-Y growth."

Consolidated revenue from operations increased 9% to Rs 93.72 crore in the December quarter.

"Our adjusted EBITDA growth of 30% in the nine-month period outpaced our revenue growth, as we run an asset-light and scalable business model. We are one of the few profitable internet companies and our PAT for the three-month period ended December 31, 2022, stood at Rs 14.05 crores," said Vinay.

CarTrade had registered a loss of Rs 18.49 crore in the year-earlier December quarter.

Expenses increased to Rs 75.76 crore in the third quarter, compared to Rs 67.60 crore in the year-ago period.

"Our profitable business model and surplus liquidity of over Rs 1,000 crores will allow us to invest

in widening our offerings towards providing a seamless phygital experience to all our users,” said Vinay.

The company said it had 35 million average monthly unique visitors, 87% of whom came through organic channels, in the latest third quarter.

Founded by Vinay in 2009, CarTrade was listed on the stock exchanges in August 2021.