New Delhi: Rane (Madras) Limited, a leading manufacturer of steering and suspension products and light metal casting components, Monday announced its standalone and consolidated financial performance for the second quarter (Q2FY24) and six month (H1FY24) ended September 30, 2023.
Standalone Q2 FY24 total revenue was INR 572.9 crore compared to INR 537.0 crore for Q2 FY23, an increase of 6.7%; EBITDA stood at INR 52.6 crore compared to INR 43.8 crore during Q2 FY23, an increase of 20.1%; EBITDA margin was at 9.2% for Q2 FY24 against 8.1% in Q2 FY23; Net profit (after exceptional item) stood at INR 7.2 crore for Q2 FY24 compared to INR 15.8 crore in Q2 FY23, the company said in a media release.
Consolidated total revenue was at INR 611.9 crore for Q2 FY24 compared to INR 600.6 crore in the Q2 FY23, an increase of 1.9%. EBITDA stood at INR 32.5 crore for Q2 FY24 compared to INR 33.8 crore during Q2 FY23, a decrease of 3.7%. EBITDA margin was at 5.3% for Q2 FY24 against 5.6% in Q2 FY23.Net profit (after exceptional item) stood at INR 17.8 crore for Q2 FY24 compared to INR 0.05 crore in Q2 FY23.
Operating highlights for Q2 FY24 Standalone with sales to Indian OE customers dropped 2%. This was mainly attributed to drop in Farm Tractors segment and lower growth on served models in passenger vehicle segment. Exports grew 31%; strong off-take for steering and light metal casting products. Sales to Indian aftermarket customers increased by 7%. EBITDA margin improved by 103 bps; Favourable mix helped offset the higher employee costs.
Operating highlights for Q2 FY24 Consolidated LMCA (Light Metal Casting Inc. ,USA) divestment completed on September 14, 2023 and accordingly the company has consolidated the financial performance of LMCA till September 14, 2023. Consequently, the company has recorded a loss on sale of LMCA for INR 85.5 crore and also created a Deferred Tax Asset of INR 113.3 crore, the release said.
L. Ganesh, Chairman, Rane Group, said, “RML continued the top line growth supported by strong execution on export demand. Though the domestic market remained positive, RML faced demand challenges in the Farm Tractor segment and served models in the Passenger Vehicle segment. With the LMCA divestment, management continues to focus on increasing export mix. We are encouraged by the order book and resilience in the Indian demand environment. We prioritise operational improvements and cost savings in the dynamic macro and geopolitical environment.”
