CarTrade Tech Q4 Results: Stock falls 8% from highs after decline in monthly average unique visitors

CarTrade Tech Ltd., the online market place for used cars, reported its March quarter results on Wednesday, May 7. The numbers were higher on a year-on-year basis on all parameters. The stock though, has cooled off from the day’s high post the results.

Net profit for the period increased by 86% from last year to ₹41.8 crore, while revenue for the quarter saw growth of 17% from the same quarter last year to ₹169.5 crore.

CarTrade Tech’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 68% year-on-year to ₹46 crore, while margins expanded by nearly 8 percentage points to 27% from 18.9% last year.
For the full year, CarTrade Tech reported its highest-ever revenue of ₹711 crore, while net profit grew by over 6x to ₹145 crore.
CarTrade’s consumer group saw 29% revenue growth, while its profitability doubled during the March quarter. The Remarketing business also grew by 12% during the quarter.

Monthly average unique visitors during the quarter fell to 44.7 million, from 49.1 million in the previous quarter, but higher than the 40.2 million during the same quarter last year.

“We see immense potential across all our businesses and continue to be encouraged by the deep connection our platforms have built with customers, surpassing 150 million users across CarWale, BikeWale, and OLX India reflects the scale and strength of our ecosystem,” Vinay Sanghi, Chairman and Founder of CarTrade Tech said.

The management added that the best for the company is yet to come.

Shares of CarTrade Tech has given up nearly all of its gains after its results, currently trading flat at ₹1,731.9. The stock, ahead of results, were up 7%.

However, one of the biggest underperformers in recent times, CarTrade Tech has staged a recovery from its all-time low of ₹347.9, which it fell to in March 2023. The stock is up 5x from those levels and is now trading above its IPO price of ₹1,618.