| Metric | Value (₹ Cr) | vs Q3 FY25 |
|---|---|---|
| Revenue | 2.1K | 1.1% |
| Total Income | 2.1K | 1.3% |
| Expenditure | 2.0K | 0.6% |
| PBT | 46.95 | 289.2% |
| Net Profit | 22.99 | 150.9% |
| OPM | 7.83% | 15.05pp |
| NPM | 1.09% | 3.27pp |
| EPS | 1.35 | 143.6% |
Varroc Engineering Reports Strong Profitability and Free Cash Flow for FY25, Recommends Dividend
29 May 2025 · 29 May 2025, 03:20 pm
Summary
Varroc Engineering Ltd. has reported strong profitability and free cash flow for the financial year ended March 31, 2025. The company's consolidated revenue from operations was Rs. 20,992 million in Q4 FY25. The PBT for continued operations before exceptional and JV profit for Q4 FY25 came at 1,034 million i.e. 4.9% of Revenue. The company generated strong free cash flow for the year of Rs. 3,116 million. The Board of Directors have recommended a dividend of 100% of Face value i.e. Rs. 1.
Key Highlights
- 1
Consolidated revenue from operations was Rs. 20,992 million in Q4 FY25
- 2
PBT for continued operations before exceptional and JV profit for Q4 FY25 came at 1,034 million i.e. 4.9% of Revenue
- 3
Company generated strong free cash flow for the year of Rs. 3,116 million
- 4
Board of Directors have recommended dividend of 100% of Face value i.e. Rs. 1
- 5
In FY25, the company filed 25 patents and were granted more than 10+ patents
- 6
Sale of stake in the China JV realized net proceeds of RMB 290 million during May 2025
- 7
Sourcing of electricity from Renewable Energy was around 31% for FY25
- 8
Net debt of the company in FY25 reduced by 2,348 million
- 9
ROCE (before tax) for FY25 was 20.8%
- 10
Free cash flow generation was also healthy at Rs. 3,116 millions or 3.8% of revenue before growth capex in land
Management Comments
Tarang Jain
CMD
India has now become the 4* largest economy and the GDP had a steady growth of 6.2% in Q3 FY25. Softening of Inflation in last few quarters and interest rates reduction globally encouraged our Central Bank to reduce Repo rate by 50 basis points. Weak growth in consumption, on top of global & regional conflicts and uncertain tariff regime, may impact discretionary spending which can have impact on Automotive Industry. However, we remain confident about the medium to long-term growth prospects of automotive industry.
Informational and educational content only. Not investment advice.