Rane (Madras) Ltd. reported standalone net profit for the June quarter plunged by 85% to ₹3 crore following a decline in sales to Indian original equipment customers and a one-time exceptional item.
The results also included a provision of ₹18.75 crore towards warranty-related costs. Total revenue grew by 6% to ₹532 crore, the manufacturer of steering and suspension systems said in a regulatory filing.
RML attributed the drop in sales to decline in farm tractors segment and de-growth in M&HCV.
Export sales grew by 33%. There was a strong off-take for steering and light metal casting products. Sales to Indian aftermarket customers declined by 17%.
RML sustained sales momentum albeit decline in volume in the farm tractor segment. The demand from international customers remained robust, said group chairman L. Ganesh.
On Wednesday, the board decided to divest/dispose of its wholly owned subsidiary in the U.S., Rane Light Metal Casting Inc. owing to changes in market conditions and re-prioritising investments.
Published - July 26, 2023 08:23 pm IST
