Auto parts firm Rane Engine Valves Ltd (REVL) has reported a net loss of ₹3 crore for the quarter ended December 31, 2021 compared with a net profit of ₹14.2 crore in the year-ago period. 

EBITDA for the December 2021 quarter stood at ₹5.2 crore  (₹5.6 crore). 

The EBITDA margin stood at 5.3 per cent ( 6.1 per cent). EBITDA margin dropped by 77 bps due to material cost increases. But it was mitigated with a better mix and higher production. Higher costs on account of the increase in employee cost and other costs also caused margin drop, a company statement said. 

An exceptional item for Q3 was VRS expenditure of ₹2.7 crore.

Net revenue of the company grew 7 per cent at ₹99.1 crore (₹92.6 crore). 

For the 9-month period ended December 31, 2021, net loss stood at ₹11.9 crore compared to ₹5.6 crore in the year-ago period. Revenue grew 33 per cent at ₹276 crore (₹207 crore).

Sales to Indian OE customers declined by 6 per cent due to a drop in volumes in the two-wheeler wheeler segment and semiconductor shortage impacting the passenger vehicle segment. Sales to international customers grew 30 per cent and the company expanded the business with non-automotive customers. Sales to Indian aftermarket customers grew 36 per cent.

“Q3 was a challenging quarter with semiconductor shortages impacting the supply chain across served customers and geographies. The increase in employee costs and other costs impacted profitability. The management team continues to implement various cost reduction and operational improvement initiatives to mitigate the inflationary pressure,” said L Ganesh, Chairman, Rane Group.

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