CarTrade tumbles 5%, here’s why!

Shares of CarTrade Tech plummeted by more than 5% to touch an intra-day low of Rs 1,155 per share on the bourses on Friday, 29 October 2021.

One of India’s largest online auto platforms, CarTrade Tech Limited recently declared its standalone and consolidated financial results for the quarter and half year ended September 30, 2021. Total revenue for Q2FY22 stood at Rs 88 crore, as compared to Rs 63 crore in the same period last year. Adjusted EBITDA in Q2FY22 stood at Rs 24 crore, as compared to Rs 18 crore during H1FY21. The adjusted EBITDA margin for Q2FY22 was 28%.

Total revenue for the half-year ended September 30, 2021, stood at Rs 150.75 crore, showing a growth of 46%, as compared to Rs 103.26 crore in the same period last year. Adjusted EBITDA in H1FY22 stood at Rs 33 crore, showing a growth of 104% as compared to Rs 16.18 crore in the corresponding period. Adjusted EBITDA margin stood at 22% in H1FY22 as compared to 16% in H1FY21.

An exceptional and non-recurring, non-cash adjustment of Rs 93 crore for employee stock options granted in FY21 has been accounted for, resulting in a net loss after tax for H1 FY22 of Rs 81 crore (net loss before tax of Rs 75 crore) for H1FY22 as compared to a net profit after tax of Rs 64 crore (net profit before tax of Rs 0.75 crore) for H1FY21.

CarTrade Tech received over 34 million average monthly unique visitors for Q2FY22, of which 86.68% was organic. This was a growth of over 34% over Q2FY21. The number of vehicles listed for auction were 3,00,671 for Q2FY22. This was a growth of over 73% over Q2FY21. The number of vehicles sold via auction were 63,533 for Q2FY22. This was a growth of over 104% over Q2FY21. In Q2FY22, the company successfully launched CarWale abSure in nine cities. CarWale abSure will deliver a world-class online-offline shopping experience for used car buyers and sellers.

CarTrade Tech Ltd is a multi-channel auto platform with a presence across vehicle types and value-added services. The brand’s platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. These platforms enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.