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Ladies and gentlemen, good day, and welcome to CarTrade Tech Limited Q1 FY '24 Earnings Conference Call. This conference call may contain forward-looking statements of the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
[Operator Instructions]
Please note that this conference is being recorded. I now hand the conference over to Mr. Vinay Sanghi, Chairman and Managing Director, CarTrade Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, everybody, and I want to welcome you to this quarterly earnings call, and thank you for taking the time out to spend this next one hour with us. Just wanted to give you the highlights of the quarter to start with. We had also circulated and uploaded a presentation. The first part was really the key metrics of the company. We have now 200-plus physical locations in the last quarter. The auction at rate of almost 1 million vehicles a year. Monthly unique visitors compared to last year continue to grow at 34 million unique visitors. The organic traffic continue to be strong at 85%, which is really the strength of the brand and the company.
Revenues were approximately INR 107 crores, INR 106.9 crores. Adjusted EBITDA, that INR 31 crores. PAT was INR 13.5 crores and we continue to have free cash flows as well as a strong cash balance, approximately 100 crores. Just to give you contract, revenues with about 18%, EBITDA -- adjusted EBITDA by 74% and PAT was almost 3x, which is at 307%.
If you look at the stand -- the consolidated. We can pick up the consolidated financials first. As I already said, revenue is INR 107 crores --, INR 106.9 crores, which is approximately 18% higher than last year. You will see the total expenses almost 5% up from last year, which is the reason why the adjusted EBITDA is up by 74%, which shows the leverage in the business.
Adjusted EBITDA -- EBITDA percentage from 20% last year on 29%. If we took out the other income, it's about still higher at 12%. As you see here, PBT has grown by 316% and PAT by 307%. On a consolidated basis, we're glad to inform you the profitability has grown, the robustness in the model has been shown. Costs have remained more about 5%. It's mostly flat. Some breakup our stand-alone business now is 56% and the new marketing revenue is about 44%.
So I think that's a bit of a change. And that's been reflected in the stand-alone accounts, which is the next slide. As you can see, our stand-alone revenue has gone up by 28%. Stand-alone adjusted EBITDA. Let's see operating revenue up by 28%. The total revenue is up by 48% on a stand-alone company.
The INR 60 crores -- the adjusted EBITDA is up to INR 20 crores from INR 8.6 crores last year, which is a 141% increase in adjusted EBITDA. EBITDA margin is a 34% stand-alone against 21% last year. If you took out the other income, the adjusted EBITDA margin up from last year, 4% to 8%. And you can see the stand-alone profit is almost 6x -- 6.3x in -- PAT which is a 12.4% and BPs about 7.7x INR 14 crores.
So all in all, the financial have been strong for the company led by 20% growth in operating revenue. And so I just want to highlight a couple of things here. One is the expenses includes a onetime due diligence costs pertaining to the Sobek Auto acquisition, and that's included in our other expenses. That's number one. Some other key highlights here are in the stand-alone is that a new not much is changing the split of use. I mean the new revenue still use about 17%, news about 83%. OEM dealer competition also is pretty consistent and stable OEM is about 62%. Dealer contribution to this business about 38%. So this is in the stand-alone accounts.
Revenue has faced some challenges, which continues to be over the last 2, 3 quarters is the remarketing side of the business, where revenue over last year grown by 7%, although EBITDA is up by 11%. And that's partly because of cost reduction of 11%, which has improved the profitability, the unit economics, but revenue still continues to be a challenge there. And I think this is coming from what we've talked about in the previous quarters. It's a decline in the repossession business.
Our repossession business, which from banks and NBFC supply from all the base banks and NBFCs down and is now 45% of our business. Our fastest-growth segment is our retail signed supplier to marketing business, which now becomes 40% of our business.
So the previous quarter, the remarketing of 55% of our business, come out of 45%. Our retail was 33%. EBITDA was 40%. So we're seeing a segmentation change, and we're hoping that the repossession also picks up in the next few quarters. But at this point, the repossession business is down, and that's actually dragging some of the revenues down. All the profitability is marginally better.
So this is the new marketing side of the business. If you go to the traffic on the consumer side or CarWale, BikeWale and other platforms, the traffic is actually up from last year, which is a 31.1 million is on 34.2 million in the same period. So it has grown. Option volumes are down, consistent with the revenue being down about 8%, so it down to -- in this quarter to an average of approximately 272,000 vehicles -- sorry, 250,000 vehicles this quarter, versus last year's 270,000, which is down by 8%.
On the Google trend, the brand, you continue to have clear leadership over the competitors, both CarWale and BikeWale are several times or a couple of times in terms of Google brand indexes on the digital brand deck. And as you know, 85% of our traffic comes organically which in traffic we don't pay for. So this is a key -- a few key highlights of the financials and key metrics for the quarter. It's been a strong performance at a consolidated level on a stand-alone basis.
The remarketing business has faced some headwinds, which we are hoping we will correct in the next few quarters. During the quarter, we also worked on the acquisition of Sobek Auto, which is also signed an SPA to acquire Sobek Auto on 10th of July. We had disclosed this earlier that we've acquired Sobek Auto, which not only runs the entire OLX classified business, but also the B2B transaction business.
So we acquired 2 businesses from them, both in Sobek Auto and we acquired 100% of Sobek Auto and its businesses the OLX classified business is something, which all of us use for selling a car or a 2-wheeler or electronics or any other item. There are multiple back on the platform, 100 million downloads under classified, more than 100 million downloads. And that leads to a large amount of monthly organic traffic very consistent with our philosophy of working with strong brands and acquiring strong brands. It's a very strong organic brand as well.
We also have a [indiscernible] transaction side of the business, which you acquired, which is helping consumer sell vehicles to peers in an auction mechanism. Even though a very, very small inventory, it generally does not pick up position on the request, which is typical to our approach on auctions. There were 2 business acquired there. Of course, with the transaction we signed a [indiscernible] agreement to acquire 100% of the company on tenth of July. We likely to close this transaction in the coming few days.
And obviously, at the time of -- once we close, we give out a lot more data and details around this transaction itself. But we're very excited about it. It's an acquisition for approximately INR 537 crores and extremely excited about acquisition itself for it we feel it will add a lot to the [indiscernible] portfolio of companies, which are CarWale, BikeWale, Shriram Automall et cetera.
This is what I had. I'm happy to pick up any questions and clarifications which you might have.
[Operator Instructions]
The first question is from the line of Siddhartha Bera from Nomura.
I had a question first on this Sobek Auto acquisition. I mean, would it be now possible to sort us share what will be the mix between the classified and the C2B business in terms of revenues? And any update if you can share on the profitability side as well maybe for last year, whatever you can share here. Basically, you have to understand more about -- I mean we have generally followed a very asset-led approach to businesses and Sobek Auto seems slightly more on the sort of asset heavy side but -- so any color if you can share on the current mix and how profitability? How should we think about over the medium to longer term to play out in this business?
Sure. Thanks for the question. As I said, because we signed [indiscernible] not close, I'm not able to disclose at this point the financial detail of the businesses. But what I do want to say is that various principal to acetic around running strong consumer brands, running strong consumer businesses, dividing value to its customers, having good uneconomic in that business is something which will apply to all our companies, not just to the auto. So I think what we are pretty sure of are confident of is that Sobek auto classified business or the transaction business. Will deliver value and we have -- we will obviously want to create strong unit [indiscernible] new businesses and also maintain our stance on keeping up businesses as asset light as possible. I think that's something we do clear. We're building marketplaces which are going to have good economics and the asset light in nature.
Got it. Got it. Okay, sir will wait for more clarification on this acquisition? And on the current businesses now, sir, reposition has been subdued for now quite a few quarters. I think from next quarter, we might start facing some favorable base intact as well because now it's been like close to a year when we have started seeing a weak set of numbers. So when do you expect some of these recovery in terms of volumes to play out? Will it happen in the second half of this year? Or do you think it may take longer now depending on your visibility at the ground level?
Honestly, the 2 parts. The first is the retailer side. It's hard for us to tell when that would recover. And yes, there will be some base effect. But the bigger factor is that the economy seems to be financial -- financing vehicles seem to have better payments on the loans and clearly lower NPAs. And that's one of the reasons why seen the protection business is lower. And it's hard to predict when the stir on the side will change. But what we're doing, and I think where we are seeing more confident about it is we're building other segments of supply by force, right? And I think that process has started some time ago.
And as you see here, even though the reproduction calm an alarming rate, other segments have taken up and filled up the volumes, which is what we are confident about doing is building our own retail business there, so that the vehicles we bring in are more and compensating the to those vehicles. And as the reprocess supply was to get better, then, of course, we'll be in a much, much better position as well. So I think our focus is really not just needing for the retailer business to come back, but it really is about growing other segments of our business, which is actually partly what's one of the reasons why the business has still been stable. Even though there been a higher fall in the over business.
Got it. Sir, lastly, what will be the cost you have in regard for this due diligence which you have said they have come in other expenses?
Yes, sure. Aneesha you want to just give a number it on approximately?
It's approximately INR 1 crore.
It's approximately INR 1 crore.
The next question is from the line of Ankit Kanodia from Smart Sync Services.
Congratulations on good set of numbers. My question is -- so my first question is related to the acquisition only. So if you look at the competitive landscape in the used car acetate business, one of our competitor recently we see is a shop, OLX is also right now series sold to us. So what is our thinking, our rationale behind making this kind of an acquisition? Of course, something it is clear that probably the valuation at which you have got is very good. But from a business perspective, looking at the competitors, it looks like it's a very, very, very difficult space to be in. So what is our rationale and strategy to take it up from this acquisition now.
Sure. So we've acquired 2 businesses. I think the first business we acquired is the OLX classified platform. The consumer like me and you are selling millions of vehicles, cars, 2 wheelers, et cetera and is actually -- and then other items, electronics, to various other things. It also has a significant job platform and a significant real estate platform. So I think what we've acquired before the entire OLX classified platform. And as you know, the brand of users or the number of users on the platform, they're extremely hard it gives us strength on having a large amount of organic traffic in addition to Carwale and BikeWale and the platforms we have.
Like CarWale and BikeWale, a lot of our traffic is again organic, as we say, which is not paid for which makes it human economics and its business economics extremely attractive to us. And this has been built on great customer experience that they've delivered. So I think that's the first reason which we see the strength in the brand and the number of these are. And that's the business we acquired, which is completely asset-light and not as for heavy, as you know.
The second business we acquired is they seem to be transaction business where they sell on vehicles or consumers make me to understand the car to dealers. And there again, they tend to auction it out in very minimal inventory with almost an asset-light manner. Where they're different from some of the other competitors is the talent be more asset-light, number one. And they tend to have a very large base of synergy -- or a large synergy from the classified business because many of the customers who sell their vehicles come from the core classified business. So that's where they're different.
We see a lot of synergies in both the classified side as well as the C2B transaction side actually. And that's what we believe. We also believe that because of all the traffic we get on OLX or CarWale. We have a differentiated advantage in the C2B business, right, with the transaction business. So that's where we are at. I think we also believe that it will take us some time to -- it's a significant -- it will be a significant event for the company and it will take us some time to integrate various things like technology, brand, people, et cetera, et cetera, which is what we are in the process of working through once we close the transaction.
So just a follow-up on this. So is it fair to assume that given the kind of unit economics on the asset heavy used car businesses have been and the production business which you are talking about. When we integrate the books. I'm not asking you for a exact number. But is it fair to say that, again, right now, our trading profitably. But once we integrate this business, probably we will again see our rates in our consolidated numbers.
I can't comment on financial other stage and I tell you to the tone. I think a lot of the speak about at the point of when we post closing the transaction.
Okay. Fair enough. So one last question. So when you are talking about the classified business, I'm just clarifying my doubt, you own the wholly classified platform. So like even if I want to trade on electronics an now in the country, right?
The entire classified platform in India is what we signed a contract to acquire. That is correct.
The next question is from the line of Brijesh Chan from Citi.
So my question is first half on the OLX classified side just taking on the topic on every [indiscernible] when financials of Sobek Auto and OLX the quarter end or as for FY '20 to review -- specifically on the classified side, there are 2 components in the businesses, those India business and inter stuff that we always need to do for these global APP. So is it fine say that whatever the exclusivity on the India business is what you are acquiring? And in very business bankers management because I imagine some of the costs within OLX classified India are also kind of appeal to the business.
Just to clarify and you clarified this in the disclosure result. We bought Sobek Auto, which acquired OLX India classified business and already own the C2B transaction business. So what we're buying is a classified business and the transaction business, not OLX's global business? I just want to clarify that. I don't reflect or communicate on the financials of the previous year of the, as I said, the way those companies were -- Sobek actually acquired -- signed a BTA to acquire a business from OLX India, which is the OLX classified business. So I can comment on the financials once you close the transaction.
Yes. Okay. On my second question is on just the standalone business. Show the size of a incarnation last year, the business. So looking at some weak and is that accidental to that is on also collating along the line to this year and the motor bring out to go one on until any [indiscernible]. So just a thought on that at business this quarter and as we look forward in the [indiscernible].
Used car revenue has grown by 29%. Used car revenue is growing by 33%. I mean there's not really much change in the ratio of 83-17, 94-6. It's not change our in the ratios, but even if in the market, the new car market actually has grown in the fourth quarter in India. It's also not only the run. I think one of the problems -- or not last year but the year before that, has been that supply has been a problem in the new car industry. That seems to have now gone away where there is supply and there is demand and volumes have grown, which is a good position and the market position to be, which is why you see the growth in the business in port as well across -- in our business as well. So it seems to be in a good position in used car industry by itself. Volumes are up supply is better than it used to be. Demand is also good, which is the best place for a consumer and for a manufacturer and a dealer and companies like us. It seems to be okay.
The used car market also seems to be growing, and that's why we've gone as well. Generally around in the car industry, things seems to be quite stable and seems to be in a position there seeing even on last year's higher day in growth. So all in all, I would say the used car industry in good days in the first quarter. I don't think there's any reason for us to assume that it will change in the next quarter either. In terms of car market, the new car, use car market.
On the tubular, also volumes have got better, and we've seen reasonable growth on the tubular side as well. So just generally all in all, traffic come from 31 million to 34 million across these platforms. So all list seems to be that the auto industry seems to have a reasonable quarter, not a really high growth quarter, but a reasonable quarter. I think that's what it seems like.
Got it. And then the last question on the remarketing business, what has been the growth in the retail segment within the remarketing side in this quarter? [indiscernible]
What I can see? I don't know exactly -- but I think that [indiscernible] correct me if I'm wrong, but the repossession will be down by like 25% or so. I mean, I'm not exactly sure the exact number, but in that range. And the retail is down. I don't have that exact number, but that has been round about 25%. Is that correct, Aneesha?
[indiscernible] The before became -- is that your right? -- on contrast.
Yes. Retail has gone up, yes.
[Operator Instructions]
The next question is from the line of Sachin Dixit from JM Financial.
Congrats on the result. My question on [indiscernible], how is the retail business in remarketing different from OLX C2B business? Can you explain that?
Yes, OLX retail auction business for the CP business is up consumers like you want to sell up now. Shriram AutoMall retail business includes people like manila but also includes could be commercial vehicles. It could be all types of vehicles. I think Shriram AutoMall is actually product agnostic. It could be cars. It could be commercial vehicles. It could be even some tractors or equipment OLX on the cars consumables. I think that may be the question.
In terms of the structure of the transaction, I guess buying the cars from the customer and basically, they have some sort of bid for this car at the back end from some dealers. But in case of Shriram AutoMall, you are not applying the path on the customer. You are just getting the transition and taking commission on the [indiscernible] is that right?
In Shriram AutoMall, when you give a water and a vehicle auction and the seller pays the buyer directly. That is correct. What you say is absolutely correct. In OLX auction, the buyer pays them, they pay the seller. That's the only difference, but they do have a back-to-back auction done against every car they transact. So even more it's quite similar. Shriram AutoMall doesn't actually pay the seller and take money from the buyer. That's correct.
Understood. So basically, if my understanding was right, that clearly Shriram AutoMall is completing inventory in OLX, while there is a back to back bid that in case or something like that happen, there is some bid.
Yes, that is correct. That is correct. That is actually correct.
But I that is absolutely coming to basically our actual business, right? I think the business we have seen the forwarding right. You are now buying a OLX transaction business. There was a transaction story that you yourself first launched by doing auction. Any update on what's happening there? How is it going to work along with the...
[indiscernible] has gone to 99 stores now. In fact, it's not wellness not connected with the OLX C2B transaction because I'm sure the place where people even me can buy a car from right, whether online or offline, the CarWale or app shop ended stores. And if you were to acquire a total transaction, it will only add your outlets. But in any way, the C2B transaction business and Aptar are not that correlated with each other, apart from the fact that all the C2B vehicles with OLX nation may be available for actual dealers to buy it, which is even a bit build-down. Remember, there's no real link in that business and actual outselling biopark, right? It seem to be option is where you can on to OLX onto want to sell my car. So it's a little different in that then. I don't know if you could be fines more connected with, I mean, similarity with Shriram AutoMall and Carwale [indiscernible].
Right. Got it. Just one final question on my side. Basically, on the OLX transaction in the quarter. Looking at how that business has grown in the past, right? They started quite close to when the market leader in venture started, but they were, I think, third or at some point, maybe in the fourth tier. Passing that the need exists in classifieds business where they are the market leader in terms of used classifieds in India. I don't think that -- but the fees that you talked about, right, the classified business planning, helping them do C2B auctions very well really played out. How do you think it's going to change?
So I don't want to comment on the past at all. And I think the way we look at it is that we are acquiring a classified business. They have tremendous strength in helping consumers that you only sell something, right? And also marketplace where a lot of buyers come to buy those products have been sold. So we are very excited about the consumer marketplace or classified marketplace. Independent to the C2B business, which also we're excited about because it gives us a certain sort of auction supply and transactions, which is quite unique by itself, getting a lot number of cards, single users to sell their cars to completely in simple manner with very high technology being used.
So one must also put into account that they've built excellent technology on both the classified side and the transaction side, which, of course, will be available to us. And that's what excites us. The synergies between the classified businesses and the transaction business, supply coming from there, something we'll talk about once we close. But obviously, the classified business is a very strong platform and has quite likely, as you say, leadership in the classified business, whether it is cars, motorcycles, electronics, et cetera, et cetera. So we feel good about all of it. I don't want to comment on what they did in the past or what we exploited in the past or not, but we see an opportunity here.
The next question is from the line of Saurabh Shah from AUM Fund Advisors.
A few questions on the remarketing. Sir, I just want to understand how does this go season than the oil and supply the modal for all of us. But on the foundry, we have seen a demo our revenues first of all. So how do you see that growing in the next 3 years, 3 to 5 years, if you can kind of thing? And how the profitability goes? So now that our costs are, I guess, nevertheless, and -- so what additional costs will be coming in the picture for the business?
So I think 2 things. One is the retail business is done right. The retail business is growing. We see around retail, adding other segments and we see a very strong positive business for the next 3 or 4 years. It's a marketplace market. This is a marketplace where it enables businesses and consumers, all types of vehicles we sell the vehicle in an efficient transplant and manner. And it is the auction more than 1 million vehicles per year. So we see a very strong business model for the next 3, 4 years. It is possible there is some segmentation change, which as you possess being retail currently in that business. And then repossession comes back, of course, should have automotive place where all your businesses will come to sell their vehicles.
So we see that. I think on the cost side, you've seen one of the reason the profitability of the unit comes is better because costs have remained flat in spite of revenue slightly be growing, right? And therefore, we see that also, like any marketplace, most of the costs are incurred and we feel that our revenue grows, a large part of that revenue becomes -- when it comes to profit or EBITDA, right? So we feel very good about the cost structure of the company. I think what we are working on is really growing the retail side of the revenue and other segments of revenue.
Okay. Sir, what I also sense is, how is market share grown over the last -- past 3 to 5 years [indiscernible] compared to past '24 and now OLX auto and everyone coming in to us. And as at what are -- so BikeWale just CarWale, by qual, of course, not connected with casual the bulk platform. And Car24and the others are car platforms. So not connected. But even CarWale is a marketplace. It's an inclusive marketplace where everybody, whether it's people or you and me or whether the dealers in India come and sell vehicles and by races. And it's an independent asset-light marketplace.
In a way, last 24, the way the model works is an asset-heavy auction business and as any dealer, right? I buy verticals and then sell with the consumers. They're almost complementary and our competitors. So market share is hard to compare it because you can't compare market. So almost complementary to CarWale, where even today Class-24-list vehicles and CarWale for sale. They're almost customers of CarWale competitors. So I think a lot of people feel that some other competitors. But as I said, they're quite complementary in nature to what CarWale does. I just want to clarify that. Yes.
And in case of the just give a change in terms of earlier, what kind of -- what was the overall traction in terms of an offline model where we were -- where there used to be from deal distributor to buy and sell cars to consumers. And what has that trend changed from offline to online, what type of conversion do you see in that?
There's no change from online to offer. I think what -- the way the used car market is structured is that even now mostly dominator controlled by fragmented dealers across the country, many thousands of segmented dealers. I think I would still think about 80%, 90% of it is mostly the small fragmented dealers. I think what's changed in the industry is that platform that CarWale and others, the dealers have become more tech savvy. And the mode of acquired a customer earlier, you have to walk into one of the outlets and buy a car, find a car. Now you'll come to care and try to figure out which car to buy and then walk into one of these leaderships. So CarWale has become the destination for like OLX, the destination for many of the dealers to find customers to sell cars and buy cars too, right? And that's how they convert these platforms.
The customer mostly still grows typically the [indiscernible] chooses a car and buy it. But what CarWale and OLX are becoming integral to the dealership network of these cars to really bring customers to that outlet. So a large, large percentage of all these car buyers now would come online first, sell their car and then maybe look for a certified car and then typically go into a dealer and buy the car.
The next question is from the line of Rohit mehra from SK Securities.
So in the last call, you mentioned the CarWale signature outlet in addition to -- or in place of Carwale abSure outlet and the number is -- so how many outlets do you have now? And how do we see this ramping up?
As I said earlier in the call, the total calls are 99, CarWale Signature and CarWale. We continue to add outlets on both the signature side as well as the abSure side. The large percentage are still CarWale, but we can have both. We feel good about the rollout. We also are quite happy with the customer value proposition and the customer service delivered by these outlets. In terms of our total percentage of business to our total overall revenue is still small, but it is growing, and it's actually been one of the big growth drivers for us already in the last year, even though in percentage terms of our total business is quite small. But we feel very good about the whole CarWale signature and locations.
Perfect. So secondly, on the car mill organized order. So what is the rationale behind this type okay? And will there be other patients will be organized?
We do many, some bulletin activities, which are regularly done across the and guessing very small, below the end marketing activities, actually. So I think the one to that, but there'll be other results. So this is tactical and below the line.
[Operator Instructions]
The next question is from the line of Nihal Kamal, an individual investor.
Congrats for the good set of numbers. My question is since we are mostly through this acquisition decision of to acquire which was long family -- and I assume that it will take 1 to 2 years to integrate the business. Now we will still be left with around INR 600 crores. And since carries already generating positive cash. Any shortfall for running this new business can be met by that? So if my understanding is correct, can we expect both to expedite the buyback decision -- I mean this year buyback? It's been long view that investors have actually got something out of it.
It's something we discussed with the Board, and we want to first close this transaction. And at that time, we'll go back to board and reassess whether it's possible or not, right? And look at where we can grow this company and how we got something, but it's something we'll take back to the Board. I think the first part is to close this transaction.
Okay. Because otherwise, again, this additional INR 600 crores will be lying in our balance sheet and balance sheet has cash since last 4, 5 years. So that is something I think The Street is not appreciating having such a high amount of cash on balance sheet and earning 6% around yield is daunting in our return on equity.
I understand. I will take this team back to the Board and pick it up in a bit, but I think the first priority is to close this transaction. But yes, we definitely look into this feedback.
The next question is from the line of Naitik Mohata from Sequent Investments.
Most of my questions have been answered. So just one question. What was the host for us during the quarter and 1, 2 years in the entire year?
Yes. You saw cost, I think, for the quarter was broken up as a exactly. As you see it's gone down from the previous year. But for the quarter, it's INR 4.63 crores, which was 5.3% last year, so it was down by 12% for the quarter. And we estimate being similar lines to the first quarter, Aneesha, that be correct?
Yes.
Yes. So that's 4.6% for the first quarter, which is down 12% from the previous year.
Okay. So we are planning something around INR 16 crores, INR 17 crores for the year?
Yes. So I think we estimate to be that range.
The next question is from the line of Ankit Kanodia from Smart in Services.
So one of the participants question on that in case of the OLX transaction business. Basically, we purchase the vehicle from the customer. And then -- there is a date even with a dealer who [indiscernible] coming. So any ballpark number, I mean, in terms of how much do we take and how many days the inventory stays with us..
The inventory is very, very short, and it is auction. So it's, in that sense, completely the -- ready to buy and ready to sell. So it's action-level auction more for convenience or sellers and buyers, we pay in the. But we make very insert small. As I say, I can't give exact data out, but we will get closing give out some of the data.
So you need to say that only when you have a peer cut transaction with a dealer. You don't pick up the vehicle from the customer, right?
That is correct. The vehicle has to on an auction before that.
Okay. Okay. So my last question is in our CarWale platform where we have dealers on loaded on our platform. So in our channels, we got from some. I don't know whether it is correct or not, I see correctly as well. But they also get free that suite for them that some dealers.
Three, I understood that it's a paid platform where they pay a fee to do every year. And then the team or use I'm talking about the care in new cars that you paid in used cars. It's possible that very small dealers registered as individual. It is possible that they registered as individual. -- but if you're a registered dealer, it is paid only I'm not sure there may be in very small cities where we mark launch pad, we see class down, et cetera. It's possible.
I'm talking about the small, a small city.
It's a very small city, it is possible or is possible. I'm not exactly shorebase there will be some long test where we've not started paid as yet. It's possible.
[Operator Instructions]
Next question is from the line of Govinda from Natwarlal and Stockbrokers.
My question is about the commission on auction selling of cars. Like any rough idea about how much person you are charged on selling those cars? And also, can you also provide us also this revenue stream between different verticals.
No, I'm not going to provide this point the vertical spread, but roughly, I think the take rate ratio is about 4%, correct if I'm wrong, approximately 4% on auction vehicle.
Okay. Okay. So the second one is, can I -- penetration specifically on 2-wheelers affect the business of by-quality vertical that going forward?
The penetration of EVs is very slow to the total volume in India at this stage. But it actually doesn't affect us either way whether a vehicle is NIC or they're quite indifferent to it, either way, manufacture the dealers have to sell the vehicles on platforms like BikeWale or CarWale. So it doesn't really matter whether it's -- obviously to us.
Okay. The third one is so do we expect the same operating leverage on the business that provided the employee costs and the product development cost like will more or like remain the same, perhaps reduced further going forward?
Yes. As you've seen last year and the results of the company stand-alone as well as in the marketing and consolidated this year. For us, increase in revenue is a lot of contribution to our unit economics and profitability. It's just the way it's architecture and asset-light businesses where costs are stable, an increase in revenue in all mean profitability. So we see this -- that's just the architecture of our business. Yes, we see it this way.
Okay. And the last one is relying upon like multiple business models like B2B, B2C, C2B. So that could be like a stable business grew trends going forward for explanation growth potential?
Yes, because the number of customers we have on CarWale or Shriram Automall sellers and buyers, we tend to be across segments. Also the very open marketplace. So you can come and sell your car in Carwale, you come buy a car from CarWale, new cars, used cars. On Shriram AutoMall cater to retail people selling the vehicles, we cater to big businesses can April Yes. I think one of our goals in aspiration is a marketplace with the entire automotive industry. And that's how we feel that many of the buyers and sellers build on matter effects on these platforms, which is why we see -- being in multiple segments is correlated a little bit to growth rates. That is correct.
Okay, sir. And lastly, and I want to know that you as a retort? Sorry, at ERP tools? ERP tools like we are providing the inspection apical side?
We provide ERP solutions to the product like dealers on our platform can use our management software to run their business. So what did you -- what was the question?
I want to know the accuracy how accurate is that the whole inspection go behind?
No. So we have the price tool when you stop price that would you mean?
Yes, yes.
No no, of course it is accurate. But it's something which is used by all consumers. So if you're coming -- if you go on a fire value today and you want to buy a used car against almost all cars we provide what we think is the right price for that car is done by a lot of data science among figuring out what prices cars are sold in India, bought in India and then we come out with price tools. So we believe it's quite accurate. I mean it just depends on what the wants and what you see.
The next question is from the line of Sachin Dixit from JM Financial.
I have one more question regarding the cost items. So if I look at employee cost, excluding user expense for this quarter, they have grown only 8% Y-o-Y. Similarly, if I look at other expenses and remove the effect of the diligence cost to still be grown Y-o-Y? How should we think of steady sort of growth in these cost items, right? Do you grow at about 10%, 20%, how charting of it?
Yes. Normally, you think that, that will be the growth rate. And that's what you think will be the growth rate as well. I think we've also gone through a quarter where Shriram Automall being slightly and last part of the reason why cost escalation also not taken place. But yes, the nature, we see our revenues over the last 3 quarters, 4 quarters and modern -- sorry, the costs have remained very stable. As I said, the business tend to be the costs are stable and our basic purchase to increase revenues always, right?
But fixed costs should stay increase at what rate is what [indiscernible].
I think normally wage inflationary data. There's very -- I mean, manpower increases are based on just mostly on very compete because for increased revenue not message power in some of these businesses. So potentially inflation -- more incremental and incremental inflationary in nature. And some increase, but not -- it increased our revenue by 100, doesn't mean leading to the cost or ramp by equal number, right? I think it just tends to be naturally -- that's the leverage in the business these platforms are showing.
And if I -- if we exclude any potential impact of the OLX transaction come in, how should we -- what sort of steady state EBITDA margins would be for business to reach?
If you see the last 4 quarters, I mean, we see last year and this year increase in every -- our continuous effort is to increase our EBITDA margin in -- so we're so far from being but the effort is to a revenue increase over the next few quarters or next few years to be best-in-class in EBITDA margins. I mean the model right now, if you look at -- they're at about -- on a consolidated basis, they're at about 29% income 12% without right? -- the last quarter, we were at almost 20%, which is March demand than last quarter since the highest loss because the cycle things in the business. But yes, the effort is to get to best in class. Just keep growing it.
And so the reason the thing was like probably peer in Shriram AutoMall had the margins of 50%. Is that something that you aspire given us? Or do you have the potential or to...
Absolutely [indiscernible]. If you're already at 20% last quarter -- I mean in Jana, I think you definitely want to in the next -- whether it's 1 year or 2 year to 3 years, but aspire to get to those kind of margins. They're asset light in nature. So as revenue goes up. We'll get there. But I think there's smaller factor of revenue growth and cost control.
Next question is from the line of Raghav Bihani from Citi.
I want to ask about the INR 40 crore internal corporate loan, which was disclosed to the stock exchange today. Can you highlight what this loan is about?
Sure. It's an immediate you haven't yet actually given the loan, it's an [indiscernible] is the INR 50 crores OLX transaction, we will give an intercorporate loan which will to a company called this loan, which gives loans to dealers who buy on OLX. So I think that is the intent. It's more intercorporate loan to -- and this one gives a range money to many OLX dealers have been on this platform. So that's the intent here to grow the OLX transaction business. But this will be done only post closing on the transaction. It's just an enabling resolution. And since it is material and to be disclosed to regulation in the disclosure today because our Board is approved. But as I said, the transaction or the loan will be given to close on OLX transaction.
Sure. So this would basically facilitate dealers to meet the transactions. And from what's given in the disclosure, it will be -- there will be -- it will be against the receivables for the dealers.
Securitized by the receivables that.
Ladies and gentlemen, due to paucity of time, that would be our last question for today. I now hand the conference back to the management for their closing remarks. Thank you, and over to you.
Thank you, everybody, for joining this call and look forward to catching up soon. Thank you, everybody. Bye-bye.
Ladies and gentlemen, on behalf of CarTrade Tech Limited, we conclude this conference. Thank you all for joining us, and you may now disconnect your lines.