Auto component maker Varroc Engineering's FY24 revenue is expected to be Rs 8,000 crore with double digit margins in the coming quarters, said Group Chief Financial Officer (CFO) K Mahendra Kumar in a conversation with CNBC-TV18 on Wednesday.

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Kumar said the company aims to reach Rs 8,000 crore at a consolidated level, including its overseas entities as well. Going forward, the margin is also expected to improve from the current levels, he said.

"More than the EBITDA margins what we are now focusing is on PBT margins. So starting from this year, maybe by sometime mid next year our intention is to take the PBT margins to higher single-digit levels are more than 5 percent," the Group CFO said.

Varroc Engineering also looks to reduce debt as its working capital improves.

EV revenue may hit Rs 1,000 cr in FY25

Margin from EV (electric vehicle) is far better, Kumar said, adding that the company is expecting a good traction to come from the space. The company also said that revenues from EV will hit Rs 1,000 crore in FY25.

"Certainly margins will be better, margins and of course the revenue per vehicle also will be far better in the EV space. We are expecting some good traction to come in the EV space in the coming years. Like how we indicated earlier in our calls the overall EV revenue should actually touch about Rs 1,000 crore plus levels by next year. So that's what we are aiming for," he noted.

Varroc's Q1 numbers

Varroc Engineering posted a 37.5 percent sequential rise in profit for the April to June quarter. The company reported a profit of Rs 55 crore against a profit of Rs 40 crore in March and a loss of Rs 3.9 crore in the year-ago quarter.

Varroc's sales for the quarter grew 10.4 percent year-on-year at Rs 1,805.70 crore, which was ahead of the industry as supply to EV players gathered pace in the quarter. Ebitda margin improved 180 basis points to 10 percent from 8.2 percent on-year, driven by business mix, incentives & operating leverage, the company said.

Varroc offers a wide range of electrical, electronics, lighting, polymer, metallic, after-market and advanced safety solutions.

Shares of Varroc Engineering closed 2 percent lower at Rs 369.70 apiece on the NSE in today's trade.