Varroc Engineering Ltd

About

Varroc Engineering Ltd was incorporated in 1988, is the flagship company of the Aurangabad-based Varroc Group. Varroc is a global tier-1 automotive component group. It is engaged in the business of manufacturing and supplying automobile components to a wide range of OEMs across the globe
[1]

Key Points

Brand Reputation
It is the second-largest Indian auto component group and a leading tier-1 manufacturer and supplier to Indian two-wheeler and three-wheeler OEMs
It is the sixth-largest global exterior automotive lighting manufacturer and one of the top three independent exterior lighting players.[1]
It has a strong client base with some big names like Ford, Jaguar, Bajaj, Honda, and many more. [2]

See full details
  • Market Cap 4,683 Cr.
  • Current Price 306
  • High / Low 500 / 260
  • Stock P/E
  • Book Value 198
  • Dividend Yield 0.00 %
  • ROCE -5.13 %
  • ROE -21.0 %
  • Face Value 1.00

Pros

  • Company is expected to give good quarter

Cons

  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 7.40% over past five years.
  • Company has a low return on equity of -2.33% for last 3 years.
  • Company might be capitalizing the interest cost
  • Debtor days have increased from 43.22 to 52.98 days.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
3,001 2,955 3,153 2,870 2,703 2,804 2,745 1,275 2,916 3,493 3,619 2,942
2,697 2,688 2,890 2,601 2,487 2,542 2,689 1,465 2,673 3,266 3,502 2,941
Operating Profit 304 267 263 269 216 262 56 -190 243 226 117 0
OPM % 10% 9% 8% 9% 8% 9% 2% -15% 8% 6% 3% 0%
Other Income 26 24 34 29 11 18 49 61 32 -77 38 15
Interest 21 27 26 31 35 37 35 43 44 38 37 39
Depreciation 166 140 153 165 167 194 207 207 227 225 236 219
Profit before tax 142 124 118 102 25 49 -137 -380 4 -113 -118 -242
Tax % 30% 19% -9% 14% 10% 40% -0% 19% 1,034% -21% -23% 5%
Net Profit 98 99 128 87 22 29 -138 -308 -40 -139 -145 -230
EPS in Rs 7.29 7.35 9.52 6.44 1.65 2.13 -10.20 -22.83 -2.97 -10.29 -9.52 -15.07

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
6,770 7,909 9,299 10,279 12,036 11,122 11,303 12,970
6,206 7,341 8,716 9,398 10,978 10,306 10,906 12,382
Operating Profit 564 568 582 881 1,059 816 397 587
OPM % 8% 7% 6% 9% 9% 7% 4% 5%
Other Income 229 73 172 108 122 94 55 9
Interest 475 -43 90 86 97 139 163 158
Depreciation 254 292 337 386 566 732 895 907
Profit before tax 63 392 327 516 519 39 -606 -468
Tax % 73% 6% 4% 13% 17% 94% -4%
Net Profit 17 370 313 450 425 0 -632 -554
EPS in Rs 16.06 353.36 254.29 36.57 31.54 0.01 -41.36 -37.85
Dividend Payout % 16% 1% 13% 1% 14% 21,284% -0%
Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:3%
TTM:36%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-41%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-28%
1 Year:0%
Return on Equity
10 Years:%
5 Years:4%
3 Years:-2%
Last Year:-21%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
10 26 13 13 13 13 15
Reserves 1,073 1,737 2,172 2,815 3,053 2,991 3,013
Borrowings 1,651 1,600 1,508 1,193 2,432 4,255 3,695
1,695 1,886 2,156 2,782 3,142 3,644 4,369
Total Liabilities 4,428 5,233 5,847 6,802 8,641 10,904 11,092
2,054 2,390 2,396 2,804 3,560 5,283 5,231
CWIP 178 315 293 344 999 790 856
Investments 22 12 293 360 362 330 376
2,174 2,515 2,867 3,294 3,720 4,500 4,629
Total Assets 4,428 5,233 5,847 6,802 8,641 10,904 11,092

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
128 290 676 1,075 474 1,414 474
-286 -575 -577 -545 -1,769 -1,259 -613
70 386 94 -523 1,129 733 -152
Net Cash Flow -87 101 193 6 -166 888 -292

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 58 55 45 50 41 36 53
Inventory Days 51 49 46 49 43 56 61
Days Payable 86 88 91 113 98 124 144
Cash Conversion Cycle 23 16 -1 -14 -14 -32 -30
Working Capital Days 22 21 13 4 11 -7 -15
ROCE % 11% 12% 16% 13% 3% -5%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
85.00 85.00 85.00 85.00 85.00 85.00 85.00 85.00 85.00 85.00 75.00 75.00
6.92 6.56 6.77 4.67 5.23 4.89 2.66 0.27 0.66 2.31 5.21 4.91
5.77 5.85 5.76 7.52 7.40 7.60 9.41 7.91 7.65 6.07 14.69 14.31
2.31 2.59 2.47 2.81 2.37 2.51 2.93 6.82 6.69 6.62 5.10 5.78

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