Varroc Engineering Boosts Q2 Profits Amid Rural Market Growth

Varroc Engineering achieved a 4% rise in profit after tax to Rs 57.80 crore in Q2. Revenue increased by 10.28% to Rs 2,080.8 crore. While international business faced challenges, domestic rural markets showed promising growth, particularly in the two-wheeler sector.

Varroc Engineering has reported a 4% increase in its profit after tax, amounting to Rs 57.80 crore for the September quarter. This is a climb from a consolidated PAT of Rs 55.72 crore reported in the corresponding period last year.

The company's consolidated revenue from operations rose by 10.28% to reach Rs 2,080.8 crore, up from Rs 1,886.8 crore during the same period last year, as per the company's statement. Earnings before interest, taxes, depreciation, and amortisation (EBIDTA) also increased to Rs 201 crore, compared to Rs 187.10 crore previously.

Despite being impacted by declines in its overseas operations and the costs associated with R&D aimed at future growth, Varroc Engineering noted a positive boost from rural consumption in India, particularly in the two-wheeler industry, which experienced a 12.5% growth.

(With inputs from agencies.)