Rane (Madras) Ltd., (RML) standalone net profit for the September quarter, after exceptional item, declined by 54% over the year earlier period to ₹7 crore.
Revenue from operations grew by 7% to ₹572 crore, the leading manufacturer of steering and suspension products said in a statement.
Pursuant to the approval of board of directors and shareholders of the company, Rane Madras International Holdings B.V. (the company’s subsidiary) sold the entire stake in Light Metal Castings Inc. USA, the step-down subsidiary and recorded fair value loss aggregating to ₹121.56 crore as an exceptional item. Consequently, the company has recorded a loss on sale of LMCA for ₹85.46 crore and also created a Deferred Tax Asset of ₹113.3 crore.
Sales to Indian original equipment customers dropped by 2%. This was mainly attributed to drop in farm tractors segment and lower growth on served models in passenger vehicle segment.
Export sales grew by 31%. Strong off-take for steering and light metal casting products. Sales to Indian Aftermarket customers increase by 7%.
“RML continued the topline growth supported by strong execution on export demand. Though the domestic market remained positive, RML faced demand challenges on farm tractor segment and served models in passenger vehicle segment,” said Rane Group Chairman L. Ganesh.
“With the LMCA divestment, management continues to focus on increasing export mix. We are encouraged by the order book and resilience in the Indian demand environment. We prioritise operational improvements and cost savings in the dynamic macro and geopolitical environment, he said.
