CarTrade Tech Limited (NSE: CARTRADE) Q3 2025 Earnings Call dated Jan. 29, 2025
Corporate Participants:
Vinay Sanghi — Chairman and Managing Director
Aneesha Bhandary — Executive Director and Chief Financial Officer
Analysts:
Vijit Jain — Analyst
Sachin Dixit — Analyst
Siddhant Kumar Behera — Analyst
Aman Saifee — Analyst
Nishit Jalan — Analyst
Arpit Shah — Analyst
Harshit Nagpal — Analyst
Siddharth Purohit — Analyst
Aastha Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3FY25 earnings conference call of CarTrade Tech Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of the future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Vinay Sanghi, the chairman and founder of CarTrade Tech Limited. Thank you and over to you sir.
Vinay Sanghi — Chairman and Managing Director
Thank you. Good afternoon everybody and welcome to the Q3 earnings call. It’s been a really strong quarter for the company and in the next few minutes I’ll try and run you through some of the key highlights. We have circulated a presentation in advance if you look at slide three and the first part of the presentation is of course as you know we’ve had record breaking revenue and profits. Our quarter three revenues stood at a record 193 crores and the profit after tax at 46 crores.
We’ve had exceptional growth from all three business verticals and all our verticals have delivered the highest ever revenues and profits and margins. For the nine month of the year revenue surged by 32%, EBITDA grew by 100% and profit after tax zoomed to 99 crores. A Q3 versus A Q2 which is consecutive quarters.
The profits rose sharply by 48%. What’s driving this growth? A consumer group which is Karvale and baikwale. Revenue increased 38% year on year resulting in a profit after tax growth of 172%.
We achieved a 35% margin in this quarter in our consumer group business which is now getting to be a benchmark of excellence in the industry. Our remarketing business which has been where growth has been a challenge in the last few quarters has delivered a 28% growth in revenue in the quarter and also has 178% profit after tax growth. And OLX where on a quarter by quarter basis we’ve seen continuous growth.
We have had 80% surge in our profits in Olex. You remember from the date of us acquiring it last year we’ve always had a growth quarter with every consecutive quarter has done better than the previous. So There’s a lot of work to be done there but we obviously feel very optimistic about OLX India’s future.
If you look at slide 4 it talks about our first three quarters of the year. As you can see from the first quarter to the third quarter we’ve added 23% growth in revenue. Within the same year the EBITDA has grown 132% from 21.58 crores in the first quarter to 50 crores in quarter three, which would mean 132% rise in EBITDA within two quarters. Margins have Overall margins have increased 28% on a consolidated basis on for EBITDA profit after tax from 22.90 crores. 22 crores 90 lakhs in quarter one has gone to 45.53 crores in quarter three. So it’s shown not only strong Y on Y growth but our business has shown strong Q on Q growth in revenues, Ebitda and profitability.
If you look at the next slide, slide 5 We are continuing to be the number one automotive platform in the country. The number one new satisfied platform in the country. The number 1 vehicle auction platform in the country.
If you look at Traffic, we’ve achieved 79 million monthly active unique visitors across all our three platforms. As we have shared earlier, we have three platforms, Karwali, Baikwale and OLX India which get more than 150 million customers per year which is more than 10% of India’s population comes to three different platforms within our group which is a very very strong, which gives you a very strong sense of the brands karvale, Baikwali and OLX. 95% of these users come organically which means we don’t pay for the traffic and that reflects in our strong EBITDA and profit margins.
We are now out of 450 plus physical locations for Ashida, Motamal outlets, Abshore outlets as well as OLEX India outlets. The auction volume went up and we are auctioning at the rate of 1.5 million vehicles a year now as I’ve already covered revenues is 193 crores adjusted.
EBITDA which takes into account ESOPs as well as interest income is up 70.2 crores which is almost like a cash proxy for us. Profit after tax that we disclose is 45.5 crores and a cash balance has increased to 885 crores. If you look at slide 6 which is a consolidated results, the revenues drawn 27% year on year to 193 crores, 32% growth for nine months at 521 crores. EBITDA surged 98% for the quarter at 50 crores and 104 crores for the nine months which is at 100% growth.
As I’ve again said, EBITDA margins are 28% versus last year. 18% in the same quarter which is up 10 basis points which is almost 10 basis points in the quarter to last year. Compared to last year, Profit stands at 46 crores versus the loss the previous year and 99 crores for nine months versus of course a small loss in the previous year.
If you look at slide 7 which is a standalone results, you see highest ever revenues of course on the standalone accounts. 38% growth in revenue for the three months, 27% growth in revenue for nine months which of course led to a massive growth in profitability. 237% growth in EBITDA for the three months or the quarter.
In the consumer group business, 442% growth in EBITDA for THE nine months ended which is at 42 crores. EBITDA PAT stands at 172 crores up in a standalone accounts and PAT for nine months stands at a growth of 70%. Again as I said, 35% margin in a standalone business is now getting best in class.
Many of you had asked for the last many quarters will our margins ever get best in class in at least one of our businesses? Now getting there. Let me also highlight that even though the group margin at 28% and the consumer group is 35% almost, in fact all our businesses the margins are more than or excessive of 20%.
Now if you look at slide 8 the remarketing business which has had a few sluggish quarters has come back to the growth trajectory. And again here you can see the levers of the business working. We had 28% growth at 63.64 crores of revenue in the quarter lead to a 73% growth in EBITDA and 178% growth in profits.
So we believe that something we’ve been talking through in the last few quarters, the repossession business is slightly as improved and is reflecting in the accounts for the quarter. If you look at slide 9 which is OLX, as I said earlier, OLX in every consecutive quarter has grown from the time we’ve acquired the company. Margins have grown, revenues have grown and profits have grown every consecutive quarter.
Revenues grown 16% at 52 crores 51.97 crores. EBITDA is up 24% and PAT is up to 14.68 crores versus the loss of last year. But here again the margins up to 26% from 24% last year and 18% last quarter. The rest of the presentation covers segmental results, our Google trend numbers and some of our organic traffic and auction listing numbers.
So I want to stop here and I’m happy to take some of the questions and answers from you. Let me again once highlight that it’s been a strong quarter performance built on a strong fundamental business. We feel pretty good about the situation of the industry and the business itself.
And yeah, I’m happy to take any question you might have for me. Thank you.
Questions and Answers:
Operator
Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the queue, you may press Star and two participants are requested to use handsets while asking a question.
Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vijit Jain from Citi. Please go ahead.
Vijit Jain
Yeah. Hi. Thank you. Hi Vinay. Hi Anisha. Congratulations on a comprehensively spectacular results here. So my first question on the consumer group business, if you can comment on the growth rate that you’re now seeing in the business, I mean this is a pretty decent acceleration, pretty sharp acceleration versus what you’ve seen in the last many, many quarters. So is this what we should expect in the near term ahead as well? And broadly, if you can talk about whether you think you’ve taken wallet share from competition across, you know, OEM ad budget, wallet share and across major dealers, ad budget, wallet share. That’s my first question.
Vinay Sanghi
Yeah, I think the one thing is that the industry has seen a very minor growth in the first nine months. As we’ve discussed, many times supply is higher than demand and that makes it a little more favorable market condition for consumer group businesses where OEMs and dealers depend a lot more on our platforms for sale of vehicles. So these are reasonably favorable market conditions at this point.
And we also seen a small growth in industry but supply is more than demand. So we’ve always highlighted that these are. And this is normally the situation in most markets where supply is more than demand and there is some growth in the industry.
So we expect that to continue in the next few quarters. I don’t think we are seeing any real change in market conditions at all at this point. I think the industry growth Rates are probably what they’re going to be at this point.
I think supply will exceed demand for the next few. So I think from an industry standpoint, we don’t see much change. Clearly Kar Valley bikewallet have grown in terms of traffic, in terms of user experience, in terms of their deliverance to car manufacturers and dealers consistently.
Right. And if you see the traffic growth is also pretty significant and therefore we feel good about the business. Whether we’ve taken wallet share is too early to tell.
My sense is that if you see the advertising numbers, generally we would have taken some share, but generally the spends have also gone up which is also affecting or helping our business. It’s a combination of wallet share as well as spend having gone up as well. But our traffic growth numbers are pretty sharp if you see as well.
Vijit Jain
Right. Yeah. Thanks Vinay. And on the remarketing business, I can see that there’s a pretty solid again 30% odd growth in auctions listing volume. So most of the growth seems to have come from this side. I know in the opening remarks you mentioned repossession. Business has slightly improved, but this looks a little bit more broad based in that or is that base effect in play here? Again, just looking at broader ecosystem, are you seeing repossession coming back just to normal or is there more to it?
Vinay Sanghi
Yeah, we see repossession having definitely grown in the quarter and it is a driver for us because almost half our volume comes from repossession. It’s about half now. It is about 42% at lowest, it’s back to 50%. So it’s clearly growing.
It also seems likely these are not one quarter phenomenon. So it seems likely that it could be a trend for a while, but it’s hard for us to predict beyond that. But generally seems that these volumes from here should sustain itself or grow from here.
It seems like that it is a factor which is driving part of the growth.
Vijit Jain
Got it. My last question on the OLX business. So OLX business since you’ve acquired, you know, focus has been on, you know, integration and reducing some of the costs and those things were achieved earlier. I think this is the first quarter where we’re seeing, you know, meaningful jump in the absolute revenues also collected. So if you can throw some color on, you know, where growth is coming from more recently and if I look at the number on a YOY basis, we are maybe at around, maybe somewhere around 15% YOY versus the first full quarter after your acquisition. Do you see enough to believe that the growth should stay here or improve from here. Any colors on that would be helpful.
Vinay Sanghi
Yeah, right. In the first year we spent a lot of time on stability of the platform, technology transition, stability of the team, you know, putting our product teams together, technology teams together. A lot of the things what took the first year, I would say a lot of the initiatives we’ve been running in the last six months on sales, product marketing, traffic, etc. Are things we’ve had very little time to work on.
Some of these things are small in a small, small way starting to play out. In no way do we think they’ve played out. So it’s still to me a lot of the, whatever the growth coming is coming from a lot of the early initiatives.
There are a lot of long term fundamental initiatives being taken and we’re hopeful that in the coming quarters we’d ideally like this to grow a lot faster. That’s revenue metrics, profit metrics, all of it. The margins have got better, we have a better handle on margins. But we would like the revenues to grow stronger in the coming quarters and years for sure. We believe there’s tremendous opportunity both on the used auto side at OLEX and they use non auto sided olx. Both, both are almost going at the same rate.
This is another question you had almost at the same rate. But it’s important that to know that the potential both is equally large and we’re just very early stages of really catering to that potential which exists. It’s very early days still.
Vijit Jain
Got it. I have just one last question and I’ll jump back into the queue. Is there a collaboration or a partnership that you have with the likes of Cast 24 or Spinny in the work? I think I saw something.
Vinay Sanghi
We continuously work with them, I think over a period of time. I mean a lot of people confuse what our relationship with them is. Cas24 and Spinny are for like full stack companies which buy vehicles, refurbish them and sell them to consumers. But they tend to be full stack. We tend to be very market. We are completely a marketplace in both Carwal and olex.
We tend to work with them pretty closely because the companies that list vehicles on our platform as well as Oleg. So we tend to work very closely with them and they actually complement our marketplace model and add value to our users as well. So yeah, we tend to work very closely with them actually.
Vijit Jain
Okay, got it. Thanks. Thanks Vinay. Those are my questions and again, congratulations. Thank you.
Vinay Sanghi
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Sachin Dixit from GM mutual funds. Please go ahead.
Sachin Dixit
Hi, Vinay. Hi, Aneesha. Congrats on a great set of results. I had a couple of questions. The first one in regards to growth rate. Right. So if I look at the growth rates in consumer business, they spiked up very sharply. Obviously some of it was driven by the fact that OEMs were not spending a lot earlier and those spends have started to come back now. But do you see this 38 odd percent growth rate likely to sustain? I mean I’m sure like next few years not. But even in the next. Do you believe such a growth rate can sustain?
Vinay Sanghi
We don’t give guidance around revenue growth rate but we do feel that market conditions are reasonable. And although October to December tends to be a little high, a bit of a high in terms of a quarter for the consumer group, always. I mean generally we just feel comfortable the way the market is right now and car value or bike Valley’s positioning is. So you don’t feel. I don’t want to comment on the growth rate but we feel confident about the business.
Sachin Dixit
Understood, understood. And coming to olx. Right. Obviously a lot of things are still in the works at the time of IPO and we discussed there was some understanding that the business is likely a 20% odd growth business which is where it has grown in the past. I think that growth rate should revert at some point. But what is happening on the cost side there? We noticed that there is a sharp drop in employee expense in this quarter. Is it just because of one single senior person leaving or there is more to it?
Vinay Sanghi
Yeah, there is some cost satisfaction because of that. Absolutely. On the employee side. But you know it takes us time because after the M and A it takes us time to balance tech costs, employee costs, organization charts. It’s so we understand everything, you know. And I think now we’ve reached to a very stable, we think a stable margin where we can think the margins will only improve with revenues and that’s across.
It’s not just in olex. Also have you seen some Shiga Motor Mall as well as Car Valley where the nature of our company is almost that we want to grow but we want to keep our unit economics growing with it and we want leverage in our business. And I think OLEX is no different where with increase in revenue we have very marginal increase in cost.
This is typically demonstrated in the consumer group and you can see it now play over the last few quarters. You can see it in saml in a quarter which has grown and OLEX is no different where we want to see margins growing the way we’re trying to structure the company, OLEX or any of the others is that revenue should grow as we increase our value to our consumers or dealers or all listers in olx’s case. But not necessarily that we have to increase costs in relation to that. A large part of revenue for OLEX is an online collection method. It’s paid online. So it doesn’t mean that manpower or other costs go up in revenues.
And I think that’s the methodology we’ve used for all our businesses and that’s the architecture of how we build products in these companies. So it’s playing out now as you can see the first sign in the last quarter for olex, all the other businesses. But that’s the nature that we worked on for last three years or four years or five years to get this basic DNA of or the leverage of revenue growth. Not increasing costs and not increasing costs.
Sachin Dixit
Completely. Fair enough. Just one final question on the remarketing side. Basically we do not notice that there was any sharp jump in NPAs for some of the vehicle financials. So the growth rate that we got even on sequential basis, is it a function of our investments into retail or there is or repositions have finally bottomed out for good?
Vinay Sanghi
No, I definitely think the growth is coming from repossession. Of course our numbers compared to the industry are much smaller. So even though the industry may not be showing it, repossession has definitely been a factor in the growth of Shiram Automodel. Other segments have grown too. But repossession has definitely grown as well. I’m not sure. I’m not as the numbers of various banks and NBSCs to know NPA is going up or not. But definitely here we find that repossession is contributing.
Sachin Dixit
Sounds good. Thanks so much.
Vinay Sanghi
Thank you. Thanks. Thanks.
Operator
Thank you. The next question is from the line of Siddhartha Bera from Nomura. Please go ahead.
Siddhant Kumar Behera
Yeah. Hi sir. Thanks for the opportunity and Congressman.
Vinay Sanghi
Thank you.
Siddhant Kumar Behera
Sir, first on the consumer business, if you just can share the mix for the quarter between old and new and used and…
Vinay Sanghi
Anisha, you want to take that up quickly. Just share the various metrics of consumer growth.
Aneesha Bhandary
Sure. It’s pretty similar to what we’ve declared in the past. The used versus new continues to be that 85 to 15 or 86 to 14. The dealer OEM also mixes pretty similar this 535.
Any other ratio that you would like to know?
Siddhant Kumar Behera
Okay. So the growth basically is coming across both OE and dealers. There is no specific segment which is going Faster than others. Is that the right assumption?
Vinay Sanghi
No, yeah, it’s similar actually. The OEMs itself has grown sharply earlier. The dealers was stronger but the owners started to grow and I think there’s a bit of factor in the last about maybe 18, 20 if you see in the last two and a half years, I mean two years, nine months for the consumer group is continuously growing. It’s not just been last quarter.
If you take the previous year’s financial year before that the consumer group has grown continuously actually. So it’s still, as I said, I still feel we are at this phase of an early stage of digital advertising and we’re seeing the growth. It’s been two years, it continues to be growing.
The consumer group, it’s not a one quarter thing. The sharp increase in this quarter you see in the margins etc. Because the leverage in the business but the growth, if you see this business has actually been continuously growing.
Siddhant Kumar Behera
Got it. And how has been the performance in the appshore business? How are we looking at ramping up there?
Vinay Sanghi
Yeah, it’s got stronger. We’ve got two sides of it now. We’ve got napsure slash signature outlets for Car Valley which is I think 180 odd stores now and we acquired Olex, we got another, I think 170, 180 stores there as well. So there are, if I’m not right, am I right Anisha? About 375 to 400 such used car franchise stores now in the group. So it’s become a very strong business model for, you know, for both OLX and Carvalh. I mean again very early days as I said but it’s become a reasonably strong business model for both.
Siddhant Kumar Behera
Got it. And if I look at again the consumer overall growth, will it be fair to say that, I mean digital advertisement overall industry would have grown in that pace or we would have gained probably some market share from some of the other digital segments like Facebook, Google and all. So any sense you have there?
Vinay Sanghi
It will be both I would think. I’ll tell you what happens is when manufacturers are having a little more stream and selling vehicles they tend to choose a little more direct from advertising, which is us, which is we’re very performance driven in a way. So if you spend money on Car Valley or is this the car on Car Valley it is almost, you’re diagating to the most, I would say serious customer or the most relevant customer.
If you put money on Star Sports or Star TV or I don’t know, Times of India or whatever, some newspaper, it’s a little more brand kind of advertising. When sales are strained, you tend to go to the more direct source for sales. I think that is one factor.
The other factor you have to see if you look at the traffic itself, I think we’ve gone from look at Q3 last year we were 38 million in the consumer group we’ve gone to 49 million. So on a 38 million per month we have gone to 49 million a month which is a tremendous increase in consumer traffic itself. If you see.
So I think these are multiple factors we look at in the growth of Car Valley.
Siddhant Kumar Behera
Got it. So lastly in slightly longer term now like if you look at the annual numbers in the consumer business we probably are closer to that 30, 31% EBITDA margins and OLX we are at close to 26, 27%. So do you think over the longer the margin potential for both of these businesses will be similar or any particular business where the potential of increase will be much higher compared to other. Any thoughts there?
Vinay Sanghi
No, we feel like these are typical businesses where the margins only go up with increase in revenue. We don’t see any major cost escalation and we don’t see. So therefore we see what we said always that with revenue increasing, margin will continue to grow. So these are early days for these companies or these businesses. As we grow in the next month, 2, 3, 4 years margin will continuously grow and we’ll get even better with our margins. As they stand now, I think the consumer grew 35% today so in last quarter and it’ll get even better as revenue grows.
Siddhant Kumar Behera
Got it sir. Thanks a lot. I’ll come back in the queue.
Vinay Sanghi
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Oman Sefi from I Wealth Management. Please go ahead.
Aman Saifee
Hello sir. I hope I’m audible.
Vinay Sanghi
Yes, we can hear you.
Aman Saifee
Thank you so much sir for the opportunity and congrats on a super set of numbers. What I have noticed is that in your consumer business what you have delivered the high growth of 38%.
Vinay Sanghi
Okay, I think we can’t hear very clearly. I think it’s smudging a bit.
Aman Saifee
Hello? Hello?
Vinay Sanghi
Hello. Yeah.
Aman Saifee
Yeah, sir. So what I was noticing sir, that in the passenger vehicle industry the inventory level were at the highest in October at 80 to 85 days. Then it went down to 65 days and further down in December month. So sir, is it right to assume that your high growth which has been came in this quarter is due to high industry, you know, high inventory level in this quarter?
Vinay Sanghi
You know, I Won’t actually high industry level inventory level one is that October, December tends to be at least October and November tend to be high selling months anyway. So it does help us. But otherwise also I think whether the inventory is three months or one month or six months, generally wherever there’s a supply availability I think we get better. So the inventory may not be high but if there’s supply available and dealers and manufacturers want to sell more vehicles is generally the more favorable market condition for us.
Aman Saifee
Understood. So basically is this index inventory level getting rationalized in the industry? So the contribution which has came from that particular, you know, new OEM share in your consumer business will get down eventually, right?
Vinay Sanghi
No, I don’t look at it that way. I feel like consumers come to buy vehicles on Car Valley. The inventory is one factor but the reason consumers come is because they want to buy. So you know, it’s of many, many factors.
I would say the fact that the industry is growing, the fact that the markets are growing, the, you know, the automotive markets are growing, the fact that inventory [Technical Issues].
Operator
Hello sir, you’re not audible. Can you hear me? Mr. Sanghi, can you hear me? Hello?
Vinay Sanghi
Hello?
Operator
Yes. Mr. Sanghi, you weren’t audible please.
Vinay Sanghi
Oh sorry. Can you hear me now?
Operator
Yes.
Aman Saifee
Yes, we can hear you. You lost in between about you know, the spend.
Vinay Sanghi
Yeah, I don’t think the inventory, I don’t think the spend or the business has been related to one or ten manufacturers having excessive inventory. That’s the question. I think it’s related to the fact that you know, people find they want to come to a platform like us. People find that you get all, you get the inventory they want here, they get the selection they want here. People also find that they want to buy cars in that month or two wheelers in that month. So it’s a multiple factor thing. It’s not about high inventories. If that’s the question.
Aman Saifee
I understood. Thank you so much.
Vinay Sanghi
Thank you.
Operator
The next question is from the line of Nitish Jalan from Access Capital. Please go ahead.
Nishit Jalan
Yeah. Hi Vinay, thank you for taking the question and congrats on a good sort of numbers. So see, I have three questions. First question on the consumer business. Yes. I think you said rightly that when supplies higher than the value it’s very good for your business. So just wanted to understand when this is a scenario growth is coming more in terms of your lead cost per vehicle, you are charging higher to the dealers, your advertisement rates have gone up or is it simply that more and more vehicles are getting sold lead generation.
So Just wanted to understand the drivers of the growth here. How much because of…
Vinay Sanghi
It’s actually all the above. One is the manufacturers spend more money. Second is as I gave the figures a little earlier, the traffic itself is up substantially year on year in Karwal and Baikwali. I think the third is, you know, platform selling obviously more vehicles. So all of it, I would say it’s not one of these things, it’s all of them.
Nishit Jalan
Okay, so there’s nothing, nothing one or factor which is, which is impacting.
Vinay Sanghi
I think that thing, I mean Nitish, that’s one of the reasons we feel good about the business is because we don’t think that there’s a reason why, a specific, very specific reason where we’ve seen this growth. As I said earlier, the consumer group business has grown over many, many quarters. It’s not a one off and I think that’s why we feel good about the business because it’s not a one off. It’s just been consistent growth over many quarters actually.
Nishit Jalan
Correct, correct, correct. So that’s why I think the only factor here is the growth has picked up substantially. Yes this business was growing earlier but it was growing more in mid teens earlier. But in the last couple of quarters we have seen growth picking up substantially. So the idea is to understand whether what is the more sustainable growth. Basically that’s what we have to understand.
And obviously there will not be data available for this. But as per your experience or as per your understanding what we understand, we know the advertisement budgets of the OEMs or at least they tell us how it has grown, not grown and it has not grown at 30% or 20% the way your top line has grown.
So does that mean that these verticals, basically domain card they call all these domains are getting more, more and more traffic now? More and more share of OEM’s wallet or any sense, any sense around these number or anything you can talk about as to any other structural changes that are happening or these changes are supposed to happen anyways but now I think looks like we are starting to see that pickup happening. So any sense on what is driving this or exactly what is the wallet share now where it can go in the next three years, five years.
Vinay Sanghi
It is correct that OEM has found more money. That’s one. You may be right that OEM not spend 30% more money. That is also correct probably. But the reality is they are spending more money on digital. I think that change does take place when you want more direct results or very quick results. You spend money on digital more measurable results.
All these require digital spends so it would be, I mean we don’t have complete data yet for the last three, four months but it would be correct to assume that some share would have been gained by platforms like Karvale or Baikwale. It would be fair to assume, but it’s also fair to assume that there is a slight shift in the pattern of OEM spending to digital. There’s also part of it is that advertising expense of OEMs are growing.
It’s all those factors. The fact that shares growing is also true. I would again put it in all the three factors that are actually taking place. You’re seeing the first signs of all of this happening actually.
Nishit Jalan
Okay. That’s a good thing to hear. Abhinay you are taking a lot of other initiatives also in the consumer business. Lending through your portal, making lending platform through your portal or maybe some other things as well. Has any of these things started working out well or started leading to some revenue generation for you guys?
Vinay Sanghi
It’s not leading to significant revenue generation, but it’s leading to traction. I think the first signs of something working is how consumers react to products like financing. For example, as you can see on our platform today, finance offers for new cars, new two wheelers, used cars, etc etc. Car Valley, Bike Valley. Even on Olexis it’s gone live.
And we find that some of these are starting adopted by consumers getting instant approval for a loan for a two wheeler or a car. Some have scaled, especially in two wheelers we find the volume is pretty high. So these are all products for the future.
But eventually people like you and me, when we buy a car or a two wheeler, definitely a two wheeler. If not a car will want a one click like experience, click a button and get the bike home. It’ll just come to your house. You’ll want that tournament experience. And obviously a lot of these initiatives on our tech product side are trying to solve these problems for the future. Even if today consumers don’t want it.
Maybe in a year, two, three, four years they will want it or some percentage of customers will want it. And that’s what we’re doing. We’re building these products for ourselves for bikes and cars.
We’re also building the Bible for OEMs. Many of the OEMs are using these products on their websites. I mean today many two wheeler and car manufacturers are using some of the technologies we created for their own customers on their own websites and own showrooms.
So I think part of our role is Also trying to get the entire industry digitized and then it just helps serve all our customers better and give them a better experience. So many of those initiatives are going on in parallel. They may not become big monetization tools immediately in the next maybe three, four months or six months.
But they’re definitely ways of changing consumer behavior and they’re also improve consumer experience. And that’s one of the reasons you see Karwali and Bike Wallet traffic going up on a base of 30 and 39 billion a month last year to go up from there to 49 million. It’s like, it’s not mean achievement.
I mean it’s a tremendous achievement to increase traffic by that scale over a 12 month period. It is these kind of initiatives which get more consumers to come. And you got to remember we are 95% organic still.
Nishit Jalan
Yeah, yeah, no, I understand that. Okay, maybe I’ll get into a separate discussion with you to discuss this in detail. Just one thing which about which I have always been curious, right? Typically if you look at in India, new car market is around 4.2 million, maybe used car market is around 5 million, right? So there are about 8 to 10 million buys and sales. That happens new car, used car combined put together. So when we, when we see the traffic numbers coming out to be 38 million, 50 million, who are these people, right? If they’re not…
Vinay Sanghi
Also two wheelers here, there are also two wheelers here. But when you look at two wheelers, the numbers go, create a little more. But even if you look at cars alone, if there are 10 million, if there are 10 million probably buyers for cars, they’re probably 80 to 100 million looking for cars or shopping for cars which may become in the next 12 months, 16 months, whatever, and then another 4 or 5 million selling cars, right? So the multiple sections of this data, right, which come around and then there are almost like 4 or 5 million maybe many users who have cars who just come and understand about their own car or want to know more about their car.
So traffic has got all sorts of people, people who own cars, people who are looking to buy new cars, used cars, people are going to sell cars, all of them, right? Anybody who’s trying to do this for the next six months or 12 months will be there. And you got to remember also market share of Car Valley is very high to car users, right? Car owners or car looking or aspiring car owners, it’s very, very high. The market share.
Nishit Jalan
Sure, sure.
Vinay Sanghi
Very few people buying a car and not coming to one of our platforms. Very few people.
Nishit Jalan
Correct. And My second question is on the used car side. I think when we bought Olex, we carted had an existing used car business as well. So have you integrated those businesses any? Have you been able to offer a better deal to dealers, used car dealers and charge higher subscription revenues from them? So anything, any of these steps you have taken on the OLX side because it’s like essentially number one and number two player getting merged together, right, or becoming one. So what kind of benefits have you seen because of that or any strategic steps you have taken to improve your positioning or to expand the size of the industry? Basically, right. Basically you are the one who has to create opportunities for monetization. So what have you done to do that?
Vinay Sanghi
We’ve got two used car businesses under Carvalhe and under Olex. Olex is almost three and a half, four times the size of Carvalhe. In the used car. Used car space For Car Valley, 85% is new, 15% is used. For Olex, about 40, 45% of its business is used cars and it is three times the size of Car Valley. The customer profile, both platforms by the way, get over 150 million customers a year.
So both are strong, both have independent brands. Customers go for different reasons to both. What we found, I mean what we find in the data is generally we find that customers want to buy a car, let’s say 7 to 8 lakhs and over tend to come to Kar Vale.
I would say big city, little more, probably buying a little more expensive car. In Rolex you find very strong coverage across all cities in India, especially B class, C class D class towns in India. And the ticket sizes seems to be more 0 to 8 lakhs.
So it’s almost like Car Valley has very strong strength because it’s such a new car platform on cars above 8 lakhs for used cars and OLX is strong up to 8 lakhs. It’s almost how they complement each other. Of course there’s overlap between the two as well.
We find that dealers and consumers come for different reasons to both as I said, OLEX is three and a half times the size. We find that dealers in Olex tend to advertise for cars or want to be there for all small towns. Very, very strong coverage in small towns and very very strong coverage on cars up to 8 lakhs rupees and Kar Valley tends to be in the top 25 cities and up to 8 lakhs.
So that’s how it is. The question of merging, we thought originally whether we Want one business other than two. We find that people come with different reasons.
The brands are strong, dealers have different reasons to come. Consumers come for different reasons. What we tend to merge always or tend to make it easy for people to do is the back end.
So if there’s a dealer on OLX and Carvalhet, can we give them one simple tool to upload cars on both platforms? Right. Can we do things like that? And that’s the work we’ve been working on on the technology side where the back end is one, but the front end where consumers and dealers are two. Right.
So you as a consumer can go to either platform or you as a dealer can go to either platform. And I think that’s how we tend to be running these businesses. We’re still in the process of completing that.
I think the first steps of that in this quarter where we’ll have some functions of backend systems common. Right. So I think those are the kind of things we have a roadmap towards on the tech side and synergy side at this point.
Nishit Jalan
Sure, sure. And one last question on housekeeping question. If I look at Q3 this quarter’s PPT last year auction volumes in remarketing is a shade lower. 300,000 units and auction volume is around 55,000 something. But if I look at the last year’s PPT, these numbers were much higher. Auction listing was 3 lakh 55,000 and auction volume was 51,000. So has there been any restatement in the last year numbers on the auction volumes and option sales because…
Vinay Sanghi
In samil?
Nishit Jalan
Yeah, because…
Vinay Sanghi
This statement for anything Anisha, anything. But I don’t think the restatement of anything.
Aneesha Bhandary
No. We look at the footprint, we have clarified these all vehicle auction listings.
Nishit Jalan
No, no, I understand that. Because Anisha, if you look at auction listing in current PPT for last year you have given 299712 but in the Q3FY24 PPT for Q3FY24 the auction listing is 3:55,363. And similarly the volume was. Auction volume was 50,925. But in this year’s PPT last year number is 45,000 something. So there’s a big difference.
Aneesha Bhandary
Yes. Which one I was clarifying these are all vehicle auction listings. Previously we had put all listings which is why in the last couple of quarters we have clearly called out only the vehicle option listing.
Nishit Jalan
Oh, okay. So you have removed some non vehicle things from that and that is the reason it is happening.
Aneesha Bhandary
Yes.
Nishit Jalan
Okay, sure. Thanks.
Aneesha Bhandary
Thank you.
Operator
Thank you. The next question is from the line of Arapit Shah from Stallion Asset. Please go ahead.
Arpit Shah
Hi.
Vinay Sanghi
Hi, Arpit.
Arpit Shah
Yeah, hi. Just superb results. Just wanted to understand in terms of monetization like given the strong platform that we have beat on the used cars, also on the new cars, our monetization is little underleverage. Right. So you believe that we are at the J curve in terms of monetization and the revenue growth should be accelerating going ahead given a position in used car and new cars. What, what is the…
Vinay Sanghi
You know we believe we’ve had a 32% growth in revenues. Right. So we believe the growth drivers are in place. 30% growth over nine months. So we believe the different revenue drivers are in place. We also believe that, you know, a lot of potential in the industry itself and most of that is around having more consumers coming to our platforms or having more dealers or more manufacturers on our platform providing more services to our customers like loans, etc. Etc.
So yeah, of course we believe at early stage the time is massive. The idea would be keep growing consumer experience as well as keep doing monetization with it. And that is why we’re growing at 32%. Right. So it’s all of these things I’ll give you, to be honest.
Arpit Shah
Got it. So you think this numbers once, you know, once all the steps that you’ve taken in the last couple of years and couple of quarters, this all initiatives now will translate for you from going for a 20% growth company to being a 30% growth company. Is that a thing that you are looking at?
Vinay Sanghi
I don’t think, we’re not giving guidance, we don’t think about that. But to be honest, if you see our growth rate in the first nine months, which is what should be looked for, it’s a 32% growth in the company on a consolidated basis. Of course the consumer group may be at 27% in different growth rates but at the company we’ve grown 32%. So our attempt is to obviously serve our consumers better. Grow fast, fast as we can, but growth based on profitable growth.
Right. Which is keep improving our margins as we grow. That’s, that’s how we tend to be as an organization and that’s how the last few quarters have demonstrated our thought process around, you know, some of these things.
Arpit Shah
Got it, Got it. So let’s say now you all are at 176 cross kind of a revenue run rate, 180 crore kind of a revenue run rate for the third quarter. You think this run rate, let’s say we’ll move to 220, 230 crores maybe by next year. And that’s how we go on to become a thousand crore revenue company. Where your costs would not escalate but your margins will just keep accelerating, keep going. How should you look at these costs going ahead once the revenue growth keeps coming in, let’s say 25, 30.
Vinay Sanghi
I can’t obviously give guidance on excess revenue, but what you’re saying is correct, is that if our revenues to grow, our cost would not increase in relation to that. We always say that our costs grow marginally but in compared to our revenue growth, if you did add some quantum of revenue to current revenue, a large part of that would go to profit. And this has been demonstrated now over 5, 6/4. This is not a 1/4. It’s been continuously happening. So you can see the margins quarter by quarter for the last four quarters and you’ll see that’s true.
Arpit Shah
Got it. Just one last question on ola. So on olac, what steps are we taking to fire up the non auto side of the business? Like what are the things that we have been doing on the back end and when should we start seeing great results on the non auto side of the business?
Vinay Sanghi
Yeah, so the non auto side there are different segments as real estate to mobile phones to bikes to electronics, household Items, jobs etc etc. In each of these we’re working a lot on the product side to see what the offering for the consumer is, what changes we need to make on the front end platform, how do we get the backend tech, how do we get more consumers to pay, how do we get more businesses to pay, how do we enhance experience for them, how do we launch products for them which enhance the experience? All of that is going on actually we’ve been working for the last year, it takes a little bit of time to make such product changes and some of it is coming in, some of it is still happening. But we do hope, we are very excited about the non auto side. So tremendous potential.
It’s probably the largest platform for bikes, mobile phones, electronics, household items, all of these. OLEX probably has very, very strong dominance in India. If you’re selling an old phone or an old washing machine, if you didn’t put on Olex, how would you sell it? And I think that’s the strength of the platform.
It has very, very high dominance. So there’s probably no other way in India to sell it outside OLX on a C2C basis or sell it to a dealer or if you wanted to buy one. Similarly, how would you buy it? How would you find a used washing machine except if it was on olx? So there’s tremendous potential here. It’s early days for us. As I said it should provide growth for us for the next 10 years. It’s not a 1/4, 2/4 story. This is probably a 10 year story or a 20 year story.
Arpit Shah
Got it. But do you think our expenses now will grow in line with inflation or there will be still some growth on.
Vinay Sanghi
That may not be inflation but we see minimal incremental cost. If you see a cost even this year the cost increase in a standard account is almost zero. So we don’t see much cost, much reason across the group cost increase. I mean there will be increments. There’ll be some additions on manpower. First of all the only real massive cost we have is manpower cost. So increments. There’ll be an increment factor and there will be probably some addition of some people. But generally our costs are you know, not likely to go up significantly in the future.
Arpit Shah
Got it. Got it. And in the OLA business you think that this business from 50 crore, 100 things can move to let’s say 100, 150 crore maybe in the next couple of years. That is a big optionality. The group owns the right time and that needs to be leveraged going ahead.
Vinay Sanghi
I don’t put a number but the limitless potential is absolutely limitless potential. I don’t, and I said I don’t want to put a number to it but there is. We’ve just barely started, you know, just started working on it so not said two, three years. I think for 10 years we’re going to have growth.
Arpit Shah
Sure, sure. Thank you.
Operator
Thank you. The next question is from the line of Harshit Nagpal from yes, securities. Please go ahead.
Harshit Nagpal
Yeah. Good afternoon sir.
Vinay Sanghi
Hi Harshit.
Harshit Nagpal
Hi. So one was if you could provide the breakdown for the remarketing business for this quarter’s revenues between Sriram, Android and Carte.
Vinay Sanghi
Anisha, you want to do that? I think it must be the different companies.
Aneesha Bhandary
Yeah. There are three different legal entries.
Vinay Sanghi
Yeah. Do we find that?
Aneesha Bhandary
No. That’s what you’re saying. We don’t not publish this in the public domain yet.
Vinay Sanghi
I understand.
Harshit Nagpal
Right, okay. And if you could give me the user breakup for the rural, urban and semi urban so both Car Valley and Olex if that is possible. Like the amount of users we have.
Vinay Sanghi
We won’t have those numbers. The user numbers, we said that. The traffic numbers. Right?
Harshit Nagpal
Yeah, yeah, yeah.
Vinay Sanghi
No, we won’t have that. We try and keep it, but we don’t have it today available with us.
Harshit Nagpal
Okay. And the advertisement revenues from the OEMs between the. And the dealers, the split between that if you would have it for the car.
Vinay Sanghi
Yeah, that’s it that we see. Anisha said. But 6535, I think 65 OEMs and 35 dealers and Karwali and by quality.
Harshit Nagpal
So 65 OEMs. It’s mostly advertisement.
Vinay Sanghi
It tends to be mostly. Mostly either advertisement or leads or. It’s not. It’s not advertising is not the way we call. Advertising is not just display advertising, but it’s also leads or it could, it could even be. You know, we are deeply integrated with manufacturers now. So it could even be transaction in some cases.
Harshit Nagpal
Right. Thank you. Thanks.
Operator
Thank you. The next question is from the line of Siddharth Purohit from InvestQ Investment Advisors Private Limited. Please go ahead.
Siddharth Purohit
Hello. Yeah, hi sir. Most of my question has been answered just two clarifications. So what would be our run rate of ESOP at the like, you know, consolidated level or if you can give it…
Vinay Sanghi
Esop second. Is it, is it broken up here? Aneesha, you can just give it. It’s actually, it’s in a standalone. It is down by 37% to 2.79 crores a quarter. Is that correct?
Aneesha Bhandary
Yes.
Vinay Sanghi
That’s correct.
Siddharth Purohit
So it will not be equally like, you know, divided between the two entities, right?
Aneesha Bhandary
No, no. It’s in the respective decks. Each of the entity is displayed separately. So the standalone reflects the consumer group, which was when I called up to 2.79 crores.
Siddharth Purohit
That is a quarterly run rate, you are saying?
Aneesha Bhandary
Yes.
Vinay Sanghi
Yes, that’s a quarterly. And it’s 8.36 crores for three months.
Aneesha Bhandary
For nine months.
Vinay Sanghi
For nine months, sorry. Which is down 37% from last year.
Siddharth Purohit
So any specific like, you know, I mean, reason why it was lower this quarter? Maybe it was not very…
Vinay Sanghi
It’s the way it is. A lot of the ESOPs cost is related to stock issued, you know, earlier, two, three years ago. And as the company as it rests, the costs keep coming down. So it’s likely to keep coming down. If the question is it likely to keep coming down even next year.
Siddharth Purohit
Okay, fine. And one more thing. On this auction site, if I say look at the realizations per auction, is it seasonally, it is higher during this quarter or it is because of the products or the sales mix?
Vinay Sanghi
Yeah, I think it’s. Yeah, it is a little bit normally Q3 is better than Q2 anyway. But it is also because of the repossession volume because it’s much higher than last year as well, same time. So the right way to look at it is 28% year on year. Right. Same period last year. So it can’t be seasonal. It is also because of volume increase due to a little bit more repossession in the water.
Siddharth Purohit
Okay, sir, thank you.
Vinay Sanghi
Thank you.
Operator
Thank you. The next question is from the line of ASTA from PK Day Advisors. Please go ahead.
Aastha Jain
Hello. Hi sir, I have a few questions. My first question is to start with. So you said that whenever our revenue increases and so that is directly gonna impact the. That’s directly gonna hit our bottom line. Right. So that is across all the three segments, right? Olx, Consumer and remarketing.
Vinay Sanghi
That is correct, absolutely.
Aastha Jain
Okay. My actual question, second question would be, so what would be a steady state EBITDA margins you expect for the consumer business, the current margins? Can we consider that as a stable one?
Vinay Sanghi
You know, we actually think that as revenue increase should go up. So I don’t, I don’t know what, I don’t know what steady means, but we actually think it should go up as revenue goes up. If revenue did come down, it will come down too. But if revenue went up, it would go up.
Aastha Jain
Okay. Okay. So sir, currently we were at approximately 30. 30. Approximately, right. EBITDA margins.
Vinay Sanghi
Yeah, 35.
Aastha Jain
Yeah, 35. So if the revenue goes up. So we are expecting those.
Vinay Sanghi
It should go up. Yes, the margin should go up. We feel the other way around actually.
Aastha Jain
Got it. So my fourth third question is related to the reparating segment. So what happened in this quarter exactly? Is it, is the growth because merely because last year quarter was so soft or something fundamentally has changed in the industry level?
Vinay Sanghi
I think it’s both. We did have a weak previous year where the growth was minimal in the remarketing business. So there was a base effect there. But there is, as I said, some signs of repossession improving or increasing and us getting more vehicles from that segment. So it’s both, I would think. But we did have a previous year which was also weak. So it’s a combination of both factors, I would say.
Aastha Jain
Got it. So my last question would be what is the right to win in this marketing remarketing segment and who are we competing with Exactly.
Vinay Sanghi
So the first part is, the second part is who we compete. We are generally competing with a very offline methodology of sales. So if a, if a bank or an NBFC or an individual didn’t sell vehicles in an auction format, you know, digital auction format. They would sell offline directly. And that’s probably the competition for us is offline sales.
What is the right to win is a very good question. It’s a marketplace so that thousands and thousands of dealers which bid for inventory coming from consumers or businesses. 40% of our business or the supply which comes is single inventory, which is what we call retail, which means each individual vehicle comes there and is sold to thousands of dealers bidding for it.
So it’s an online digital marketplace which is by itself a right to win because you have dealers coming because there are sellers of consumers or businesses selling and sellers come because there are businesses buying. It’s a C2B B2B business, that’s one. So there’s a network effects there which feeds off each other.
And I said these dealers are thousands of. There’s no single buyer buy more than half a percent on our platform. So it’s a very, very large number of buyers which buy this inventory.
We’re probably the largest supplier of inventory to dealers in India, number one. Number two, there’s a tremendous amount of physical infrastructure. Shiram Automobile, that’s one of the reasons we acquired the company.
We have 130 physical locations or auto malls as we call each of them in the minimum of five acre properties where we keep vehicles which are for sale. So if you are a bank or an NBFC and you want to sell your vehicles, you can physically keep it with us and then we can do a digital sale for you. So I think it’s a combination that also the differentiation in India.
So it’s a digital business, mostly digital. But all these factors are network effects, marketplace dynamics, physical infrastructure, you know, skill in technology and product are factors why we have a right to win.
Aastha Jain
Got it sir. That’s it from my end. Thank you.
Operator
The next question is from the line of Vijit Jain from Citibank. Please go ahead.
Vijit Jain
Great. Thank you so much for the opportunity again. So earlier in this call you described your business to OEMs as, you know, performance [Technical Issues].
Vinay Sanghi
I think we lost. Hello?
Operator
Yes, I think we have lost Vijit.
Vinay Sanghi
Vijit, yeah.
Operator
Okay. So ladies and gentlemen, that brings us to the last question for today.
I would now like to hand the conference over to the management for the closing comments.
Vinay Sanghi
Thank you for joining in today and taking this time out. We feel excited about the last quarter and we also feel excited about the future of the company. So thank you once again and look forward to hearing from you again soon.
Thank you. Bye-bye.
Operator
Thank you. Ladies and gentlemen, on behalf of Car Trade Tech Limited, that concludes this conference. You may now disconnect your lines.