Rane Holdings Q1 net declines 41% to ₹12 crore

August 04, 2023 08:51 pm | Updated 09:12 pm IST - CHENNAI

L. Ganesh

L. Ganesh

Rane Holdings Ltd.’s consolidated net profit for the June quarter contracted 41% from the year-earlier period to ₹12 crore.

The net profit was down due to an exceptional expense of about ₹20 crore towards warranty provision and VRS in the subsidiary companies, the holding company of Rane Group said in a regulatory filing.

Revenue from operations increased 9% to ₹894 crore. EBITDA margin rose 195 bps to 9% due to lower material cost and improved operational performance.

Revenue from Indian original equipment customers grew 5% supported by strong growth across vehicle segments. Revenues from international customers increased 29% driven by higher off-take across steering, valve train, light metal casting and occupant safety products. Revenue from Indian aftermarket segment decreased by 2%.

“Q1 was an eventful quarter for Rane Group companies with demand remaining strong across major customer segments in India and International markets,” said its Chairman and Managing Director L. Ganesh.

“We are closely monitoring the evolving economic indicators and continuing to prioritise cost reduction and operational improvement programmes in the upcoming quarter,” he said.

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