Companies

Rane Madras posts ₹24 crore loss in FY20; announces salary cut

Our Bureau Chennai | Updated on June 18, 2020 Published on June 18, 2020

Total net revenue of the company fell 19 per cent

Rane Madras has reported a net loss of ₹24.4 crore the year ended March 31. The net loss includes an impairment of ₹37.6 crore. The automobile parts company reported a net profit of ₹47.2 crore in 2018-19.

The total net revenue of the company fell 19 per cent at ₹1,119.2 crore when compared with ₹1,380.8 crore.

On a consolidated basis, the company’s net loss stood at ₹45.5 crore in FY20 as compared to a net profit of ₹2.4 crore in FY19. Its consolidated revenue fell 18 per cent at ₹1,291.5 crore (₹1564.6 crore).

“Rane Madras had a challenging year with a significant drop in sales on account of the demand environment in India and lower volumes on served models in export business. The operational performance continued to improve in steering and light metal casting business in India helping partially offset the volume-related impact,” L Ganesh, Chairman of Rane Group said.

Salary cut

“The Covid-19 pandemic has significantly affected the business and the company has drafted measures to minimise the impact. This includes a management salary reduction of 10-35 per cent from junior to senior level employees respectively,” he added.

He also said that the Covid-19 pandemic had significantly impacted the business of the company's United States (US) Subsidiary which is into manufacturing high precision aluminium die castings for the automotive sector. The Board, he added, will review the performance of the business closely in the next 12 months and take an appropriate decision, keeping in view the long term interest of shareholders.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on June 18, 2020
This article is closed for comments.
Please Email the Editor