Companies

Chip shortages pull down Rane Madras’ Q3 standalone net by 64%

BL Chennai Bureau | | Updated on: Jan 24, 2022
L Ganesh, Chairman, Rane Group

L Ganesh, Chairman, Rane Group

Total revenue for Dec 2021 quarter stood at ₹394 cr as compared with ₹399 cr in the year-ago quarter

Auto parts firm Rane Madras has reported a 64 per cent decline in its standalone net profit at ₹7.7 crore for the quarter ended December 31, 2021, when compared with ₹21.5 crore in the year-ago period, due to supply chain constraints on account of semiconductor shortages.

Total revenue for the December 2021 quarter stood at ₹394 crore as compared to ₹399 crore in the year-ago quarter. EBITDA fell by 39 per cent at ₹31 crore (₹51 crore), while EBITDA margin was lower at 7.9 per cent (12.7 per cent in Q3FY21)

“Significant increase in cost of all raw material and other costs has resulted in a drop in EBITDA margin by 483 bps,” according to a statement. 

On a consolidated basis, the company slipped into the red with a net loss of ₹4.3 crore for Q3FY22 as compared to a net profit of ₹ 5.5 crore in the year-ago quarter. Total revenue stood at ₹ 441 crore (₹435 crore). 

“Q3 was a challenging quarter with semiconductor shortages impacting the supply chain across served customers and geographies. Also, commodity prices remained at elevated levels impacting profitability. The US subsidiary sustained improved operational performance. We hope the third wave of coronavirus in India does not adversely impact the demand environment,” said L Ganesh, Chairman, Rane Group.

 

Published on January 24, 2022
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