Profit before exceptional items and tax stood at Rs 103.36 crore in Q4 FY25, up 3.55% from Rs 99.81 crore posted in the same quarter last year. The company reported exceptional items worth Rs 56.41 crore during the quarter.

EBITDA stood at Rs 213.4 crore in Q4 FY25, registering a decline of 2.42% YoY. EBITDA margin reduced to 10.2% in Q4 FY25, compared to 11.1% reported in the corresponding quarter previous year.

On segmental front, revenue from the automotive business was Rs 2,035.63 crore, registering a 5.84% YoY increase, while income from other segments came in at Rs 63.58 crore, up 23.09% YoY during the same period.

Tarang Jain, CMD said, 'India has now become the 4th largest economy and the GDP had a steady growth of 6.2% in Q3 FY25. Softening of inflation in the last few quarters and interest rate reductions globally encouraged our central bank to reduce the repo rate by 50 basis points. Weak growth in consumption, on top of global & regional conflicts and an uncertain tariff regime, may impact discretionary spending, which can have an impact on the automotive industry. However, we remain confident about the medium- to long-term growth prospects of the automotive industry.

During Q4 of FY25, all the segments registered moderate growth on a YoY basis: - 2W grew by 5.8%, PV grew by 5.2%, CV grew by 3.1% & 3W grew by 9.5%. On a QoQ basis also, almost all segments, other than 2W, reported strong growth, as normally Q4 is a strong quarter for the Indian automotive industry every year. 2W de-grew by 1.2%, 3W grew by 3.0%, PV grew by 20.4%, and only CV grew by 20.9%.

Now coming to the operational performance, during Q4 FY25, the company registered consolidated revenue of Rs.21 bn with a growth of 11% YoY on like-to-like basis, with India operations growing at 13%. Our EBITDA for the quarter was around 10.2% on back of improvement in the gross margin and benefits of operating leverage. Our PBT before exceptional items and JV profits was over Rs. 1 billion or 4.9% of revenue in Q4 FY25.

As you all know, we have been working on structural changes like merger of VEL and VPL and exiting from China JV. We had to recognize certain one-time exceptional items primarily relating to these initiatives, which will simplify our operations and also improve our financial performance going forward.

We continue to strengthen our balance sheet and return ratios. The net debt of the company in FY25 reduced by 2,348 million, and as a result the net debt to equity reduced to below 0.5x at the end FY25 from 0.64X at the end of FY24. The absolute net debt figure was at 7,480 million. ROCE (before tax) for FY25 was 20.8% and free cash flow generation was also healthy at Rs 3,116 million, or 3.8% of revenue before growth capex in land.

In FY25, we also achieved net new business wins with annualized peak revenues of Rs.11,734 million, with EV models constituting more than 55% of this. It is more heartening to see business wins in our overseas operations also, which will improve profitability from FY 27 onwards.

Our continuing focus on revenue growth, improvement in gross margin, control on fixed cost and optimization of capex and working capital will enable us to generate healthy free cash flows in the future also.'

Meanwhile, the company's board has recommended a dividend of Rs 1 per equity share for the financial year 2024-25, subject to shareholder approval at the 37th Annual General Meeting (AGM). The company has fixed Friday, 8 August 2025, as the record date to determine shareholders' entitlement to the dividend. If approved at the AGM, the dividend will be paid within 30 days from the date of the meeting.

Further, the company's board has approved the re-appointment and payment of remuneration to Tarang Jain as chairman and managing director of the company, liable to retire by rotation, for a period of 3 years from 1 June 2025 to 31 May 2028, subject to approval of the members of the company.

Furthermore, following the scheme of amalgamation of wholly owned subsidiary Varroc Polymers with Varroc Engineering, effective from 1 February 2025, the authorized share capital of the company increased from Rs 50.45 crore to Rs 55.94 crore. The board also approved the reclassification of Rs 5.49 crore of authorized share capital, converting 54.90 lakh equity shares of Rs 10 each to Re 1 each, subject to shareholder approval.

Lastly, the board has resolved to seek shareholders' approval via special resolution at the AGM to issue secured or unsecured redeemable non-convertible debentures (NCDs) amounting to not more than Rs 500 crore, in one or more tranches, either in Indian rupees or foreign currency, on a private placement basis.

Varroc Engineering designs, manufactures, and supplies exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle (OHV) OEMs directly worldwide.

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