Rane (Madras) Q1 net falls 76% on sluggish auto market

Our Bureau Chennai | Updated on July 24, 2019

Auto component maker Rane (Madras) Ltd (RML) has reported a 76 per cent drop in its standalone net profit at ₹3.2 crore the first quarter ended June 30, 2019 when compared with ₹13.4 crore in a year-ago period, on the back sluggish automotive market.

Total net revenue fell 14.5 per cent at ₹297 crore when compared with ₹347.5 crore.

Sales to Indian vehicle makers declined 18 per cent. Sales to international customers declined 11 per cent driven by drop in volume for die casting products, according to a statement.

EBITDA stood at ₹25.5 crore as against ₹39.1 crore in Q1 of previous fiscal. EBITDA margin was 8.6 per cent as against 11.2 per cent in the year-ago quarter.

On a consolidated basis, the company reported a net loss of ₹10.3 crore as compared to a net profit of ₹4.1 crore in June 2018 quarter. Total revenue stood declined by 13 per cent at ₹346 crore (₹397 crore)

“Q1FY20 was a difficult quarter with a significant drop in demand across vehicle segments in India. We expect this declining trend to continue in the near future. The management is working on various initiatives to reduce the impact of volume drop in India business. Rane Precision Die Casting is working on ramping-up new businesses and improve the operational performance,” said L Ganesh, Chairman, Rane Group.

Published on July 24, 2019

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