The automotive component maker has acquired the balance 30% stake in its Romanian unit from its joint venture partner for 1.05 million euros (about Rs 9.3 crore) in cash.
The acquisition of the stake in Varroc-Elba Electronics S.R.L from Romania's Elba SA is part of an ongoing group consolidation exercise, the auto-parts maker said in a filing on Wednesday. Varroc-Elba has now become a step-down subsidiary of Varroc Engineering.Varroc-Elba was incorporated on 14 January 2019. It makes and sells electronic lighting solutions for automotive companies and suppliers.
As on 31 December 2019, Varroc-Elba recorded total losses amounting to 1,534,381 LEI (Romanian leu) (about Rs 2.8 crore) and had a net current debt of 2,258,648 LEI (around Rs 4.13 crore).
On a consolidated basis, Varroc Engineering reported a net loss of Rs 38.77 crore in Q2 September 2020 as compared to a net profit of Rs 22.78 crore in Q2 September 2019. Net sales jumped 7.9% to Rs 2,916.15 crore in Q2 September 2020 over Q2 September 2019.
Shares of Varroc Engineering fell 0.96% to Rs 403.50.
Varroc Engineering is engaged in design, manufacture and supply exterior lighting systems, plastic and polymer components, electrical-electronics components, and precision metallic components to passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle OEMs directly worldwide.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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