News on Medial

Closure of OLX Auto biz pushes CarTrade into losses in Q3 FY24

Entrackr · 1y ago

Medial

Automobile classifieds platform CarTrade has recorded over 15% growth in scale during the quarter ending December 2023 but the company slipped into red during the third quarter or Q3 FY24. The losses, however, were due to the discontinued operations of the auto sales business (C2B consumer-to-business operations) of OLX. It shut down the C2B model on the pretext of unsustainable unit economics in October 2023. CarTrade acquired OLX India’s auto business in a deal worth Rs 537 crore in July last year. CarTrade’s revenue from operations grew 15.5% to Rs 138.6 crore in Q3 of FY24 as compared to Rs 120 crore in the previous quarter (Q2 FY24), as per its consolidated financial statements sourced from the National Stock Exchange. In comparison to the third quarter of the previous fiscal (Q3 FY23), its operating revenue spiked 42.6% YoY from Rs 97.2 crore. CarTrade generated 35.7% of its revenue from consumer segment accounting to Rs 49.42 crore while its remarketing and classifieds verticals made Rs 46 crore and Rs 43.1 crore, respectively in Q3 FY24. The company’s overall revenue (including non-operating income of Rs 13.27 crore) reached Rs 151.85 crore at the end of Q3 FY24. On the expense side, employee benefits expenses formed 54% of the overall expenses which went up 12.3% to Rs 67.56 crore during the period. This cost also includes share based expenses of Rs 4.56 crore. In total, CarTrade’s overall expenses increased 13.6% QoQ to Rs 125 crore in Q3 from Rs 110 crore during Q2 of the same fiscal year. Following the losses of Rs 45.51 crore incurred due to discontinued operations of OLX auto business, CarTrade slipped into losses of Rs 23.55 crore in Q3 against Rs 5.04 crore profit in the previous quarter. Excluding the losses due OLX, the company posted a profit of Rs 21.96 crore in Q3 which soared 4.3X compared to the previous quarter. During Q3 FY23, it booked Rs 14.04 crore in profits. On a unit level, the company spent Re 0.9 to earn a rupee in Q3 of FY24. For the nine months ended period (Apr-Dec 2024), CarTrade recorded Rs 344.7 crore revenue from operations with a loss of Rs 5 crore. CarTrade went public in May 2021 and raised around Rs 2,000 crore via an offer-for-sale. It was listed on the NSE at nearly Rs 1,600 per share in August 2021 and is currently roaming around Rs 691.5 per share with a market cap of Rs 3,240 crore or $390 million.