Rane Madras Q3FY22 results: Reports consolidated loss of Rs 4.31 crore

Rane (Madras), the manufacturer and distribution of steering and suspension systems, today reported a consolidated loss of Rs 4.31 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 5.49 crore in the corresponding quarter last fiscal.

The company's consolidated revenue from operations grew 2.47 per cent YoY to Rs 437.79 crore in the reported quarter compared to a revenue of Rs 427.23 crore posted last year.

EBITDA dropped 61.23 per cent to Rs 12.15 crore in the reported quarter compared to Rs 31.34 crore posted last year. Its margin contracted to 2.7% in Q3FY22 compared to 7.4 per cent posted in Q3FY21.

"Q3 was a challenging quarter with semiconductor shortage impacting the supply chain across served customers and geographies. Also, commodity prices remained at elevated levels impacting profitability. The US subsidiary sustained improved operational performance. We hope the third wave of coronavirus in India does not adversely impact the demand environment," said L. Ganesh, Chairman, Rane Group.

Rane (Madras) in a statement said, "Sales of the US subsidiary grew with a ramp-up in volumes on new programs. However, the semiconductor shortage resulted in a drop in momentum Improved operational performance sustained on quality, productivity and customer delivery.

There was an exceptional income of USD 1.3 million on account of US Federal stimulus benefits."

The company has reported EPS of Rs -2.80 for the period ended December 31, 2021, as compared to Rs. 4.38 in the period ended December 31, 2020.

Rane (Madras) Limited (RML), established in 1960, is part of the Rane Group of Companies, a leading auto component group based out of Chennai. RML has two divisions namely Steering and Linkages Division (SLD) and Light Metal Casting India Division (LMCI). SLD manufactures mechanical steering gears, hydrostatic steering systems and steering and suspension linkage products. LMCI manufactures low porosity, high-quality light metal casting such as steering housings and engine case covers. Through its overseas subsidiary Rane Light Metal Castings Inc. (RLMCA), RML manufactures high-pressure light metal casting components from its facility in Kentucky, USA.