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 

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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


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