The company on Thursday announced its Q2FY24 scorecard after market hours, reporting a net profit of ₹12.97 crore, a 130% jump from a net profit of ₹5.58 posted in the same period of last year. Its net revenue for the quarter reached ₹147 crore, 44% higher than the ₹102.49 crore generated in Q2 FY23.

For H1FY24, the company’s net profit reached ₹26.48 crore, a 198% improvement compared to a net profit of ₹8.90 crore in H1FY23, while the revenues jumped to ₹254.86 crore, a 32% jump from ₹192.76 crore.

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Commenting on the company’s performance, Vinay Sanghi, Chairman and Founder of CarTrade Tech, said, “This has been an important quarter for CarTrade Tech, highlighted by the acquisition and ongoing integration of the OLX India business. Our strategy has involved restructuring the OLX operations to improve our unit economics and ensure that the classifieds business enhances and supports our consumer group business effectively.”

“This strategic move strengthens our leadership in the market, making us the number one auto portal, classifieds platform, and auto auction platform in the country. Our platforms together attract around 70 million unique visitors each month, of which 90% originate organically. This is a testament to the strength of our brands and our dedication to offer a superior customer experience,” he added.

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Following the company’s Q2FY24 numbers, the shares opened strongly in today’s trading session at ₹733.90 apiece compared to the previous closing price of ₹728.55 apiece and strengthened further to hit a new 52-week high of ₹832.40 apiece, marking an impressive gain of 14.25%.

CarTrade Tech operates an automotive digital ecosystem that connects automobile customers with automotive manufacturers (“OEMs”), dealers, banks, insurance companies, and other stakeholders.

The company owns and operates under several brands, such as CarTrade, CarWale, and AutoBiz. Through these platforms, the company enables new and used automobile customers, vehicle dealerships, OEMs, and other businesses to buy and sell their vehicles simply and efficiently.

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CarTrade Tech shares have been performing well on Dalal Street for quite some time. In September, the shares saw a significant gain of 22.7%. In the current month, the upward trend continues, with an impressive increase of nearly 21.98% so far. Notably, from the all-time low of ₹340 apiece, the shares have surged by 140.29% to date.

However, the stock is still down by around 49% from its IPO price of ₹1,618 per share. CarTrade Tech made its debut on the stock exchanges on August 20, 2021, after raising ₹2,998 crore through a complete offer for sale. Notably, it has never traded above its IPO price since its market debut.

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Domestic brokerage firm Kotak Institutional Equities said,” We like the advertising business for its user base, though CarTrade needs to rapidly scale up new monetization avenues it has identified in OLX. We retain estimates and await more clarity on OLX.”

The brokerage retained its ‘sell’ call on the stock with a target price of ₹470 apiece.

At 11:45 AM, the stock was trading with a gain of 13.50% at ₹826.50 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 10 Nov 2023, 12:17 PM IST