Varroc Engineering Limited — PPTs, 10-02-2025: Investor Presentation

**Financial Highlights**: Varroc Engineering reported revenue of ₹20,753 million for Q3 FY25, reflecting a 10.1% increase YoY. EBITDA remained stable at 9.2%, with a profit before tax (PBT) margin rising to 3.2% from 2.4% in Q3 FY24. The company recognized an exceptional cost of ₹796.5 million due to a corporate arbitration verdict requiring a stake sale to a joint venture partner.

**Strategic Initiatives and Growth Drivers**: The firm continues to diversify its portfolio, with new product initiatives for electric vehicles (EVs) including inverter electronics and ambient lighting. For 9M FY25, Varroc secured lifetime orders valued at ₹59.74 billion, with a significant portion from EVs, suggesting strong future revenues in this sector.

**Business Developments**: The Indian operations witnessed a consistent growth trajectory, reporting an 11% increase for the first nine months of FY25. The NCLT has approved the amalgamation of Varroc Polymer with Varroc Engineering, expected to take effect in April 2024.

**Market Position and Competitive Advantage**: Despite a challenging automotive market, Varroc demonstrated resilience with its India business growing by 9.5%. The company's broad exposure to EVs positions it favorably as global demand surges.

**Investor Implications**: The strategic focus on technology and EVs hints at significant potential growth. Investors should observe how the integration of Varroc Polymer and the execution of new product lines will impact future revenues and profitability in the evolving automotive landscape.