Carraro India Achieves 40% Profit Growth in January-March Quarter of FY25

Carraro India Limited, an auto ancillary company, announced a 40% increase in profit after tax, reaching Rs 23.7 crore for the March quarter compared to the previous year. The firm had recorded a PAT of Rs 18.2 crore in the fourth quarter of FY24. Total income for the quarter rose by 13% to Rs 447.9 crore from Rs 396.3 crore in Q4FY24.

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For the fiscal year FY25, Carraro India's profit was reported at Rs 88.1 crore, marking a 41% rise from Rs 62.6 crore in FY24. The domestic market is expected to maintain its growth momentum, largely due to the increased adoption of four-wheel drive (4WD) technology, according to the company.

Domestic Market Growth and EBITDA Performance

Balaji Gopalan, Managing Director of Carraro India Limited, stated, "We concluded FY25 on a positive note, having met our topline and EBITDA guidance. While total income remained flat year-over-year, EBITDA grew by 24 per cent YoY, primarily driven by an improved product mix, increased localization, and effective cost control measures."

The company's EBITDA margin surpassed its guidance of over 10%, expanding by 192 basis points year-over-year to reach 10.2% by the end of FY25. Gopalan highlighted that the domestic business, excluding indirect exports, showed significant strength with a double-digit revenue increase due to sustained demand for locally sold products and growing adoption of 4WD technology.

Export Market Challenges and Future Outlook

Despite weak export markets, Carraro India achieved overall revenue growth. The company expects continued growth in the domestic market while anticipating expansion in exports through new business acquisitions despite global uncertainties. Gopalan mentioned that the domestic market's encouraging signs, such as stronger-than-expected adoption of 4WD vehicles and tractors, bolster confidence in achieving the FY26 revenue growth target.

On exports, Gopalan noted that while the outlook remains uncertain for now, recovery is anticipated to begin in the second half of the year. Growth will be driven by the newly acquired tele-boom handler business. "Within the above scenario, we expect our topline to grow in the range of approximately 8-12 per cent," he stated.

The company remains optimistic about its future prospects despite challenges in export markets. The focus on new business opportunities and strong domestic demand are expected to support Carraro India's growth trajectory moving forward.

With inputs from PTI