Varroc Engineering tumbles 13% on disappointing December quarter results

However, the management sees robust demand in VLS business across regions as car manufacturers geared up their production schedules to cope with the pent-up demand

Shares of Varroc Engineering, on Wednesday, crashed 13 per cent intra-day to Rs 397.25 on the BSE after the company reported a disappointing set of numbers for the December 2020 quarter (Q3FY21).

The company’s consolidated Ebitda (earnings before interest, taxes, depreciation, and amortisation) declined 8.8 per cent year on year (YoY) at Rs 245.60 crore. Ebitda margins declined 260 basis points (bps) YoY, mainly due to lower margins in Varroc Lighting Systems (VLS).

The company said the VLS margin declined due to Covid second wave-related heavy absenteeism, coupled with higher OEM demand for Czech plants, resulting in high