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Specialty Retail company Popular Vehicles and Services announced FY24 results:
- Total Income stood at Rs 5,646.7 crore; up 15.4% on YoY basis
- EBITDA (incl. other income) stood at Rs 286.1 crore; up by 21.81% on YoY basis with margins at 5.1%
- Profit after Tax (PAT) stood at Rs 76.1 crore, up by 18.7% on YoY basis with margins at 1.3%
- For FY24, the Board of Directors have recommended final dividend of Rs 0.5 (25%) per equity share of Face value Rs 2 each, subject to the approval of Shareholders.
Commenting on the results Naveen Philip, Promoter and MD, Popular Vehicles and Services Limited said, “We would like to thank all the Investors for the great support to make our IPO successful. The equity infusion in the Company will be utilized in debt reduction and further strengthen our Balance sheet. We have deployed Rs 192 crores by end of FY24 as intended and this will lead to interest savings in FY25.
In FY24, the sales volume excluding service business de-grew by 4%, however the Revenue increased by 14%. The growth was led by sales of premium vehicles. The luxury segment revenue doubled this year. This growth is inspite facing multiple external challenges such as floods in Tamil Nadu in December 2023 and nonavailability of cars for one of our OEM in Q4.
Going ahead, we believe growth will be driven by sale of premium vehicle and Electric vehicles. This strategy has helped us to successfully diversify and expanded our product offerings across vehicle spectrum.
The Services & Repairs and Spare Parts Distribution businesses did exceedingly well this year. We saw volume growth of 10% and Revenue growth of 21% in the services & repairs business. This is a high margin business with higher contribution to EBITDA. We expect to grow this business with financial prudence, in the years to come leading to margin expansion at consolidated level.
As a part of our strategy to focus on non-Kerala markets, we recently inaugurated new 3S facility exclusively offering Bharat Benz vehicles in the state of Maharashtra. This is our 5th touchpoint in this state. This will further increase our Non-Kerala revenues which stood at 38% in FY24 up from 26% in FY21. We will look to diversify geographically in the coming years.
On the back of IPO proceeds, repayment of Debt and a strong Balance Sheet, the credit rating for our borrowings got upgraded for our company and 2 of our subsidiaries. This will bring down our interest cost in FY25.
Looking forward we shall continue to deliver strong performance on the back of our laid down strategy of de-risking revenue streams, focus on high margin businesses, increase wallet share from existing dealerships and adding new relationships. Over the years we have established a strong legacy forged by deep partnerships with OEMs, integrated business model and delivering greater value to end customers.”
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