Rane (Madras) Ltd. (RML) has reported a 66.2% dip in its standalone net profit to ₹3.7 crore for the third quarter ended December 2019. The manufacturer of steering and suspension products and die-casting components posted a total net revenue of ₹280 crore compared with ₹341.9 crore in the year-earlier period. It was a challenging quarter with steep volume drop in Indian business. The management’s focus on cost reduction initiatives helped to partially mitigate the impact of the drop in volume, the company said. The U.S. subsidiary, RPDC, experienced lower volumes on a new programme. RML continues to invest in repairs and maintenance and make systemic progress to effect sustainable operational improvement, said its group chairman L. Ganesh.
During the period under review, sales to Indian original equipment customers declined 25% across commercial vehicle and farm tractor segments.
Sales to international customers declined 28% driven by a delay in commencement of new business for steering products and a drop in volume for die-casting products.
Sales to Indian aftermarket customers increased 17%, a company statement said.
