Varroc Engineering, a Tier 1 automotive component supplier, on Tuesday announced new orders worth over Rs 5178 crore in FY23. Out of the total, business wins from seven prominent EV customers were of Rs 1,796.8 crore. About 56% of the orders won came from four-wheelers, while the remaining 44% were contributed by two- and three-wheelers, the company added.
Varroc Group manufactures and supplies electrical, polymer, metal and exterior lighting systems to leading OEMs worldwide, with end-to-end capabilities in design, development and manufacturing of two-wheelers, three-wheelers, passenger vehicles, commercial vehicles and off-road vehicles. In FY23, group revenue from continuing operations was Rs 6,920.9 crore.
Tarang Jain, chairman and managing director, Varroc, said, “Automotive production in India during 4Q FY23 grew year-on-year for most segments, on the back of easing semiconductor issues and improved of economic activity However, the industry segment from which we generate around 70% of our revenue, i.e. 2W, experienced a 3% decline as exports were hit by geopolitical issues and domestic demand was affected by lower consumption in rural areas.” .
The company’s consolidated revenue from operations grew 2.6% y-o-y to Rs 1,701.1 crore in 4Q23 and 17.4% for the full year. “Early signs of rising rural consumption and a strong domestic economy are expected to augur well for FY24,” Jain added.
