Varroc Engineering Limited — PPTs, 10-12-2024: Investor Presentation

1. **Financial Highlights**: Varroc Engineering Limited reported FY24 revenue of ₹75,443 million, marking a 9.5% increase, primarily driven by a 14.7% surge in its Indian business. H1 FY25 revenue reached ₹39,796 million, up 7.8%, again fueled by growth in India. Notably, profitability improved, with H1 FY25 PBT at 3.7% and FY24 PBT at 4.1%, significantly better than the 1.1% in FY23.

2. **Strategic Initiatives and Growth Drivers**: The company plans to strengthen its position in electric vehicles (EVs), with nearly 40% of new lifetime business wins in FY24 coming from EV supply contracts. Revenue from EVs increased from 5.3% in FY24 to 9.2% in H1 FY25, reflecting a strategic pivot towards growth in this sector.

3. **Business Developments**: Varroc announced plans to increase its sourcing from renewable energy, initiating an agreement to procure 36.0 MW DC under a captive route. This initiative is set to enhance sustainability and reduce operating costs.

4. **Market Position and Competitive Advantage**: Varroc stands as a leading technology supplier in the two-wheeler market and is gaining traction as a systems supplier for four-wheeler telematics and interior systems. The company’s extensive relationships with established OEMs bolster its competitive edge.

5. **Investor Implications**: Strong revenue growth, coupled with improved profitability and strategic advancements in the EV sector, signals positive momentum for Varroc. Investors should monitor the company's execution on its ambitious growth targets and ongoing improvements in operational efficiency.