New Delhi – Auto seat maker Varroc Engineering sales rose by 24% in the second quarter of 2019 to INR 30bn ($415 m) and reported EBITDA grew by 43bn, according to a Bombay Stock Exchange filing.
EBITDA reached INR 3.2bn in the 2019 quarter.
The company said the numbers would have been higher but for the joint venture in China. Varroc’s revenue fell by 34.4% compared with the first half of 2018. It stood at INR 1.2bn. At the same time, the company’s share of EBITDA at the JV fell by 49.5% to INR 113 m. No reason was given.
The company is putting the finishing touches to a new plant in Bulgaria, which is expected to start production in November.
Another plant is being built in Morocco. This is taking longer than previously thought, and is expected to start operation in April next year, instead of February.
Over the first half of 2019, sales were up 22%, compared with 2018.
Sales reached INR 59.2bn in the half. Reported EBITDA rose 26% to INR 5.6bn in the half. This is an increase of INR 1.2bn.
The EBITDA margin remained the same at 9%
Tarang Jain, Varroc’s MD, said: ‘During the quarter we faced a challenging macro-economic environment caused by Brexit uncertainty, US-China trade sanctions, increase in fuel costs and regulatory changes in Europe and India. This impacted industry growth in India and abroad.’
|Varroc Engineering Q2 and H1 2019 (INR m)|
|Q2 2019||Q2 2018||% Change||H1 2019||H1 2018||% Change|