Decoding CarTrade’s FY23 financial numbers


After generating profits consecutively for three fiscal years (FY19, FY20, and FY21), CarTrade slipped into losses during FY22. However, it bounced back in FY23 and churned sizable profit along with over Rs 360 crore in operating revenue in the same period.

CarTrade’s revenue from operations grew 16.3% to Rs 363.7 crore during the fiscal year ending March 2023 as compared to Rs 312.7 crore in FY22, as per the company’s consolidated annual financial statements with National Stock Exchange.


It also earned a non-operating income of Rs 63.98 crore during FY23, helping the overall income grow by 19% to Rs 427.7 crore.

On the expenses side, employee benefit costs formed 55.9% of the total expenses. This cost, however, contracted 38.3% to Rs 205.3 crore in FY23 from Rs 332.7 crore in FY22.


Importantly, the higher employee cost in FY22 was majorly due to the inclusion of ESOP expenses of Rs 185.18 crore. In FY23, the ESOP cost stood at Rs 27.94 crore. During the year, Shriram Automall India Limited, a subsidiary of CarTrade, bought back 2,72,156 shares granted under ESOP at a price of Rs 600 per share for a consideration of Rs 16.33 crore.

The depreciation and amortization cost of the company increased 16.2% to Rs 28.74 crore in FY23, while finance costs went up 18.9% to Rs 7.67 crore during the same period. Further, CarTrade also recorded a cost of materials of Rs 4 crore in FY23 which dwindled 50% from Rs 8 crore in FY22.

CarTrade’s total annual expenditure shrank 23.2% to Rs 367 crore in FY23 from Rs 478 crore in the previous fiscal year. On the back of a reduced employee cost, the bottomline of CarTrade also switched to green and it recorded Rs 40.4 crore profits in FY23 against Rs 121.3 crore loss in FY22.

As mentioned above, CarTrade reported consecutive profits of Rs 28.07 crore, Rs 29.54 crore, and Rs 103.4 crore in FY19, FY20, and FY21, respectively. The following fiscal year (FY22), however, the streak broke when it slipped into losses of Rs 121.3 crore. The losses in FY22 were attributed to Rs 185.18 crore of non-cash share-based payments (ESOP expenses).

CarTrade’s net cash flows from operations tumbled 23.7% to Rs 48.21 crore in FY23 from Rs 63.15 crore in FY22.

Coming to ratios, CarTrade’s EBITDA margin and ROCE went positive to 22.67% and 3.10% in FY23. On a unit level, the company spent Rs 1.01 to earn a rupee of operating income.


On a quarterly basis, CarTrade’s scale remained stable at Rs 95.86 crore during Q4 of FY23 as compared to Rs 97.2 crore in Q3 of the same fiscal. For comparison, the firm generated Rs 87.9 crore and Rs 82.8 crore operating revenue in Q2 and Q1 of FY23, respectively.


CarTrade’s profits grew 25% to Rs 17.5 crore in Q4 from Rs 14 crore in Q3. It’s worth highlighting that the Q3 was the best quarter for CarTrade in FY23 as its revenue grew 10% and profits surged 2.5X during the said period.

CarTrade has raised over $330 million as primary capital and was valued at $967 million following its last fundraise in April 2021. Soon after the funding, CarTrade filed its DRHP with SEBI to raise around Rs 2,000 crore via an offer-for-sale.

CarTrade was listed on the NSE at nearly Rs 1,600 per share in August 2021 and is currently hovering around Rs 480 per share with a market cap of Rs 2,270 crore or $280 million.

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