Varroc Engineering Ltd Share Price – NSE /  BSE

Auto Ancillaries, Small Cap

Varroc Engineering announced the appointment of Dr. Karl-Heinz Glander as the Head of R&D for the Business II. Dr. Glander will play a pivotal role in driving the Company's innovation and technology strategies, reinforcing Varroc's commitment to delivering cutting-edge solutions for the automotive industry.

In his new role, Dr. Glander, based out of Germany will oversee the R&D activities for Business II and report to Dhruv Jain, CEO, Varroc Business II. He will be responsible for developing advanced technology such as Advanced Driver Assistance System (ADAS), Driver Monitoring System (DMS) & Driver and Occupant Monitoring System (DOMS), cockpit electronics, video telematics, fleet management systems for the automatic industry etc. His leadership will be key in driving Varroc Business II's R&D strategy, fostering a culture of innovation, and enhancing the company's competitive edge in the global market.

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Elgi Equipments Ltd, Fertilizers & Chemicals Travancore Ltd, Shyam Metalics & Energy Ltd, Kalyan Jewellers India Ltd are among the other stocks to see a surge in volumes on NSE today, 22 August 2024.

Varroc Engineering Ltd witnessed volume of 75.5 lakh shares by 14:14 IST on NSE, a 32.37 times surge over two-week average daily volume of 2.33 lakh shares. The stock increased 11.94% to Rs.600.00. Volumes stood at 1.75 lakh shares in the last session.

Elgi Equipments Ltd notched up volume of 30.39 lakh shares by 14:14 IST on NSE, a 17.11 fold spurt over two-week average daily volume of 1.78 lakh shares. The stock rose 4.57% to Rs.662.35. Volumes stood at 91386 shares in the last session.

Fertilizers & Chemicals Travancore Ltd registered volume of 62.9 lakh shares by 14:14 IST on NSE, a 16.36 fold spurt over two-week average daily volume of 3.85 lakh shares. The stock rose 7.98% to Rs.1,028.75. Volumes stood at 2.44 lakh shares in the last session.

Shyam Metalics & Energy Ltd notched up volume of 120.87 lakh shares by 14:14 IST on NSE, a 8.49 fold spurt over two-week average daily volume of 14.24 lakh shares. The stock rose 6.26% to Rs.811.00. Volumes stood at 10.43 lakh shares in the last session.

Kalyan Jewellers India Ltd recorded volume of 283.94 lakh shares by 14:14 IST on NSE, a 6.56 times surge over two-week average daily volume of 43.27 lakh shares. The stock gained 7.39% to Rs.584.70. Volumes stood at 198.35 lakh shares in the last session.

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Elgi Equipments Ltd, Aarti Drugs Ltd, Shyam Metalics & Energy Ltd and Grasim Industries Ltd- Partly Paidup are among the other gainers in the BSE's 'A' group today, 22 August 2024.

Varroc Engineering Ltd soared 13.34% to Rs 607.45 at 11:46 IST. The stock was the biggest gainer in the BSE's 'A' group. On the BSE, 1.25 lakh shares were traded on the counter so far as against the average daily volumes of 17540 shares in the past one month.

Elgi Equipments Ltd surged 7.66% to Rs 681.95. The stock was the second biggest gainer in 'A' group. On the BSE, 71365 shares were traded on the counter so far as against the average daily volumes of 10982 shares in the past one month.

Aarti Drugs Ltd spiked 7.05% to Rs 571.5. The stock was the third biggest gainer in 'A' group. On the BSE, 1.01 lakh shares were traded on the counter so far as against the average daily volumes of 12094 shares in the past one month.

Shyam Metalics & Energy Ltd jumped 6.49% to Rs 813.35. The stock was the fourth biggest gainer in 'A' group. On the BSE, 4.64 lakh shares were traded on the counter so far as against the average daily volumes of 67922 shares in the past one month.

Grasim Industries Ltd- Partly Paidup spurt 6.00% to Rs 1855. The stock was the fifth biggest gainer in 'A' group. On the BSE, 65 shares were traded on the counter so far as against the average daily volumes of 581 shares in the past one month.

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The profitability of the company was impacted by negative operating leverage in overseas operation and start-up cost related to two new plants in Maharashtra.

However, revenue from operations grew by 5.16% to Rs 1,898.85 crore in Q1 FY25, driven by India business growth of 11.3%.

Profit before tax (from continuing operations) in Q1 FY25 was at Rs 55.99 crore, down 14.18% from Rs 65.24 crore recorded in Q1 FY24.

EBITDA stood at Rs 172.4 crore in the June quarter, registering a decline of 4.3% YoY. EBITDA margin reduced to 9.1% in Q1 FY25, as compared to 10% reported in the corresponding quarter previous year.

The company’s revenue from Automotive business stood at Rs 1,859.89 crore (up 6.24% YoY) while income from other segments came in at Rs 38.96 crore (down 29.11% YoY) during the period under review.

Tarang Jain, CMD said, “In Q1 FY25 strong domestic macro factors resulted in most of the automobile segments growing on YoY basis other than the CV segment. 2W grew by 19.6%, 3W grew by 9.4%, PV grew by 5.8%, CV de-grew by 1.4%. However, on QoQ basis, we saw de-growth in almost all segment other than 2W, primarily due to cyclical nature of the industry. 2W grew by 6.1%, 3W de-grew by 1.4%, PV de-grew by 10.3%, CV de-grew by 13.4%.

The overseas markets, especially the US & European market also showed negative growth for 2W. In the Asean region, the growth was largely driven by low-end segments and the premium segment continues to struggle for growth in this region. During Q1 FY25 the Company registered revenue of Rs.18,989 million with a 5.2% YoY growth. The Indian business reported a growth of 11.3%.

In Q1FY25, our lifetime new business win was over Rs 795.9 crore. The cumulative order wins are expected to result in annual peak revenue levels of around Rs 141.6 crore. Nearly 48% of our business win in the quarter has come from EV players. Our Revenue from supplying to EV players in Q1 FY25 was approximately 8% of our overall revenue.

We also continue to remain prudent in our capital allocation and exercise tight control on working capital and capex. This has resulted in net debt reducing by further 668 million in Q1 FY25 and our net debt to equity has improved to 0.59. Further, we continue to work across initiatives to achieve cost reductions across several categories of cost. We are also implementing various initiatives in the overseas markets also to reduce input costs and fixed costs.

The first phase of our renewable energy sourcing initiative is expected to result in 36.6 MWp of sourcing from solar power starting from Q2 of this year highlighting our commitment to sustainability. The board has further approved phase 2 to source another 14.00 MWp in this financial year.”

Varroc Engineering design, manufacture, and supply exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle (OHV) OEMs directly worldwide.

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