CarTrade Tech Limited (BSE: 543333, NSE: CARTRADE) has announced record-breaking revenues from its OLX India operations, signaling a robust performance in the digital marketplace sector. The company is poised to achieve its strongest quarterly performance to date, underscoring its growing dominance in India's online automotive and goods trading platform.

Record-Breaking Performance

OLX India, a key component of CarTrade Tech's portfolio, has delivered exceptional results, with July and August marking the highest-ever monthly revenues for the platform. This surge in performance is attributed to strong consumer adoption across both automotive and non-automotive categories.

Impressive User Base

The platform's success is underpinned by its massive reach, serving approximately 180.00 million unique users annually. This extensive user base solidifies OLX India's position as a leading destination for buying and selling used cars and other products across the country.

Projected Growth

CarTrade Tech projects that Q2 will yield a strong revenue growth of approximately 15.00% year-over-year. This growth is expected to result in the company's highest-ever revenues and profits, further cementing its market leadership.

Potential Catalyst: GST Reform

The company anticipates that the government's proposed reduction in Goods and Services Tax (GST) will act as a catalyst for the used car and product market. This reform is expected to make ownership more affordable and drive faster upgrade cycles, potentially stimulating new purchases and expanding both supply and demand on the OLX platform.

Strategic Advantages

OLX India's unique position to benefit from this industry momentum is attributed to several factors:

1. Brand Strength and Scale: With over 180.00 million yearly unique users, the brand has become synonymous with buying and selling used products in India.
2. Category Diversity: The platform's strength across both automotive and non-automotive sectors (including electronics, real estate, furniture, and jobs) provides multiple growth engines.
3. Robust Dealer Network: A deep network of verified dealers ensures liquidity, better pricing, and faster transactions.
4. Product Innovation: AI-led personalization, safety features, and trust badges create a seamless and secure user experience.
5. Affordability Shift: The potential GST cuts position OLX India at the center of India's sustainable consumption movement.

Leadership Insights

Siddharth, Head of Auto Business at OLX India, commented on the performance: "Used cars are becoming even more attractive for buyers and upgraders. At OLX India, we are seeing record engagement from both consumers and dealers, translating into double-digit revenue growth. With August being our highest-ever month, we are confident Q2 will be a landmark quarter for our auto business."

Olive, Head of Non-Auto at OLX India, added: "This milestone underlines the trust consumers place in OLX India across categories beyond cars, be it electronics, furniture, real estate, or jobs. The GST-led boost to affordability will not only drive auto but also create a stronger momentum for the entire used-products economy."

As CarTrade Tech continues to leverage its strong market position and the favorable industry trends, investors and market watchers will be keenly observing the company's performance in the coming quarters. The anticipated record-breaking Q2 results could potentially set a new benchmark for the digital marketplace sector in India.

Note: This article is based on the press release dated September 2, as disclosed by CarTrade Tech Limited to the stock exchanges.

CarTrade Tech Limited, India's leading automotive platform, has reported exceptional financial results for the first quarter, showcasing robust growth across its business segments.

Record-Breaking Performance

The company achieved its highest ever quarterly revenue of INR 199.00 crores, marking a 27% year-on-year increase. More impressively, CarTrade Tech's profit after tax (PAT) surged by 106% to reach INR 47.00 crores, demonstrating strong bottom-line growth.

Segment-wise Performance

Consumer Group

• Revenue growth: 32% year-on-year
• Profit growth: 79%
• EBITDA margin: 29%

The consumer group, which includes CarWale and BikeWale, showed remarkable performance despite a flat automotive industry growth.

Remarketing Business

• Revenue growth: 36% year-on-year
• Profit growth: 258%
• EBITDA margin: 23%

The remarketing business, operated through Shriram Automall, gained significant momentum with growth across repossession and retail segments.

OLX

• Highest ever revenues
• Profit growth: 71%

OLX, the company's classified platform for used products, achieved its highest ever revenues and showed promising growth potential.

Financial Highlights

• Consolidated EBITDA margin improved to 25% from 15% year-on-year
• Cash position strengthened to INR 1,024.00 crores, up by INR 70.00 crores from the previous quarter
• Employee costs increased by 7%, primarily due to annual increments factored in the first quarter

Strategic Initiatives and Future Outlook

During the earnings call, Chairman and Managing Director Vinay Sanghi highlighted several key points:

1. Product Innovation: The company has launched new products, including an Elite Buyer program for OLX, with three more launches planned for the current quarter.

2. Market Leadership: CarTrade Tech maintains its position as the number one automotive platform, used classified platform, and vehicle auction platform in India.

3. User Base: The company attracts approximately 75 million monthly users across its platforms, with 95% of traffic being organic.

4. Digital Adoption: The company is benefiting from increased digital adoption, particularly in Tier 2 and Tier 3 cities.

5. Future Growth: Management expressed optimism about future prospects, citing the vast total addressable market (TAM) and ongoing technological innovations, including AI interventions.

Conclusion

CarTrade Tech's strong Q1 performance underscores its robust business model and market leadership in the automotive digital space. With a focus on product innovation, expanding user base, and leveraging technology, the company appears well-positioned for continued growth in the evolving Indian automotive market.