Companies

Rane Engine Valves trims Q2 net losses marginally

Our Bureau Chennai | Updated on October 22, 2021

L Ganesh, Chairman, Rane Group

EBITDA was at ₹3.5 crore

Auto parts firm Rane Engine Valves Ltd (REVL) has reduced its net loss marginally at ₹3.1 crore for the quarter ended September 30, compared with a net loss of of ₹3.5 crore in the year-ago period.

EBITDA for the quarter was at ₹3.5 crore (₹3.9 crore).

The EBITDA margin stood at 3.5 per cent (4.6 per cent) in the year-ago period. Increase in material cost, employee cost and other costs resulted in drop in EBITDA margin by 112 bps, according to a company statement.

However, net revenue grew 20.4 per cent to ₹100.4 crore (₹83.4 crore).

Sales to Indian OE customers grew 15 per cent as the company experienced strong demand from passenger and commercial vehicle segments. Sales to international customers increased by 20 per cent. The schedules from international OE customers were affected by semiconductor shortage. However, robust order flow from international aftermarket customers helped post healthy growth.

“REVL experienced strong growth across market segments. Despite operational improvements, increase in material and employee cost impacted the profitability. Demand revival continues to be strong. However, the supply constraints due to semiconductor shortage remain a concern. Further increase in the commodity prices poses a challenge. The management team continues to implement various cost reduction and operational improvement initiatives to mitigate the inflationary pressure,” said L Ganesh, Chairman, Rane Group.

Published on October 22, 2021

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