Industry

Rane Engine Valve records ₹3 crore Q3 loss

Rane Engine Valve Limited has posted a net loss of ₹3 crore for the third quarter ended December against a standalone profit of ₹14 crore in the year-earlier period on account of chip shortage.

Total revenue rose from ₹93 crore to ₹98 crore, an increase of 7%. There was an exceptional item relating to VRS of ₹2.7 crore, it said in a regulatory filing.

“Q3 was a challenging quarter with semiconductor shortage impacting the supply chain across served customers and geographies,” said L. Ganesh, chairman, Rane Group.

“The increase in employee costs and other costs impacted profitability,” he added.

The management team continues to implement various cost reduction and operational improvement initiatives to mitigate the inflationary pressure, he added.

According to him, sales to Indian original equipment customers declined by 6%, due to drop in volumes to two-wheeler segment and semiconductor shortage impacting passenger vehicle segment.

Sales to international customers grew by 30% while sales to Indian aftermarket customers grew by 36%.

The company, meanwhile, said it was planning to raise ₹15 crore either by way of issue of equity shares or convertible securities to the promoter/promoter group on preferential basis.


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Printable version | May 25, 2022 1:55:13 pm | https://www.thehindu.com/business/Industry/rane-engine-valve-records-3-cr-q3-loss/article38325350.ece