Varroc Engineering Q3 Review - Near Term Pain, Long Term Thesis Intact: Dolat Capital 
Starter Motor assembly line at Varroc Engineering Ltd. (image: Company website)

Varroc Engineering Q3 Review - Near Term Pain, Long Term Thesis Intact: Dolat Capital 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Varroc Engineering Ltd. displayed a weak margin performance in Q3 FY21 dragged by contraction in margin of Varroc Lighting Systems (VLS).

Consolidated Ebitda de-grew by 13 % YoY at Rs 2.26 billion with margin of 6.5% (down 285 basis points YoY) on account of premium freight and overtime in Czech plants (due to labour shortage) and slower ramp-up in production of Poland and Morocco facilities.

The management expects VLS margin to normalize in Q4, however shortage of semiconductor may suppress the top line growth for VLS.

Click on the attachment to read the full report:

Dolat Capital Varroc Engineering Q3FY21 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.