Cartrade Concall February 2025: Key Insights and Growth Highlights

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Cartrade Concall February 2025: Key Highlights and Insights

Cartrade Concall February 2025: Key Highlights and Insights

Strong Financial Performance

Cartrade Tech Ltd reported outstanding financial results for Q3 FY25. The company achieved record revenues of ₹193 crores, with a profit after tax (PAT) of ₹46 crores. This marks significant growth across all business segments.

For the first nine months of FY25:

Revenue increased by 32%
EBITDA doubled, showing 100% growth
PAT reached ₹99 crores

Quarter-on-quarter, the company saw a 48% rise in profit compared to Q2. This showcases the strong momentum across its operations.

Consumer Group Performance

The consumer business, including CarWale and BikeWale, witnessed impressive growth:

Revenue grew by 38% YoY
Profit after tax surged by 172%
The segment achieved a 35% profit margin, setting a benchmark in the industry

The platform’s popularity is evident, with 79 million active users per month, and 95% of the traffic is organic. This indicates strong customer trust and reliance on the platform.

Remarketing Business Growth

The remarketing segment showed a strong turnaround:

Revenue grew by 28%
Profit after tax jumped by 178%
The repossession business played a key role, now contributing 50% of total volume

This business segment continues to expand, supported by operational improvements and increased market demand.

OLX Business Expansion

Since acquiring OLX, Cartrade Tech has seen steady growth:

Profits increased by 80%
Revenue grew by 16% to ₹52 crores
EBITDA improved by 24%, with margins rising from 24% to 26%

Management remains optimistic about OLX, especially in the used auto and non-auto segments, highlighting strong potential for long-term growth.

Market Trends and Opportunities

The current market conditions favor Cartrade Tech:

Supply is exceeding demand, benefiting platforms like CarWale and BikeWale
OEMs and dealers are increasingly using Cartrade’s platforms for vehicle sales due to high user engagement and better traffic

The shift of digital advertising budgets from OEMs towards more measurable platforms is also working in Cartrade’s favor.

Key Growth Drivers

Several factors are fueling Cartrade Tech’s rapid growth:

Increasing website traffic and improved user experience
Enhanced digital advertising opportunities
New financing options for consumers, making it easier to purchase vehicles

These initiatives aim to boost engagement and drive long-term business growth.

Efficient Cost Management

Cartrade Tech is focusing on sustainable revenue growth while keeping costs under control:

Minimal cost increases expected despite revenue growth
Strong unit economics to ensure profitability
Improved margins expected as the business scales up

This disciplined approach helps maintain financial stability and growth.

Strategic Developments

To enhance efficiency and customer experience, Cartrade Tech is:

Integrating CarWale and OLX on the backend while keeping them independent for users and dealers
Expanding the remarketing segment, utilizing 450+ locations to enhance auction volumes
Strengthening relationships with banks and NBFCs, adding value through better infrastructure

These efforts aim to streamline operations and improve market positioning.

Future Outlook

Cartrade Tech’s management is confident about sustaining growth momentum, particularly in consumer business and remarketing.

Key focus areas for future growth include:

Enhancing OLX’s long-term potential, positioning it as a major growth driver for the next decade
Expanding digital advertising and financing solutions to improve customer experience
Strengthening business operations to maintain profitability

With strong market demand, digital advancements, and strategic expansion, Cartrade Tech is well-positioned for continued success.

FAQs

1. What was Cartrade Tech’s revenue in Q3 FY25?

Cartrade Tech reported ₹193 crores in revenue for Q3 FY25.

2. How much did profit after tax grow compared to Q2?

Q3 PAT increased by 48% compared to Q2.

3. What is the significance of OLX in Cartrade Tech’s business?

OLX has seen 80% profit growth and plays a vital role in used auto and non-auto segments, offering strong future potential.

4. How many monthly active users does CarWale and BikeWale have?

CarWale and BikeWale together have 79 million monthly active users, with 95% organic traffic.

5. What are the key growth drivers for Cartrade Tech?

The company’s growth is driven by higher website traffic, better user experience, digital advertising opportunities, and financing options for consumers.

6. How is Cartrade Tech managing costs?

Cartrade Tech is focusing on strong unit economics, keeping incremental cost growth minimal, and improving margins as revenue increases.

Cartrade Tech’s strategic focus on digital growth, cost efficiency, and user experience makes it a strong player in the automotive industry, paving the way for sustainable expansion.