Rane Madras , a leading auto component manufacturer, has reported a robust financial performance for the second quarter, with significant growth in revenue and profitability.

Key Financial Highlights

The company's consolidated financial results for Q2 showcase impressive year-on-year growth:

Revenue Growth Drivers

The company's revenue growth was driven by strong performance across various segments:

• Domestic OE Sales: Grew by 6%, primarily due to higher offtake in the passenger vehicle and farm tractor segments.
• International Sales: Increased by 10%, supported by strong demand for steering products.
• Indian Aftermarket: Experienced a significant 17% growth.

Operational Performance

Rane Madras's EBITDA margin improved to 9.0% in Q2 from 8.8% in the same quarter last year. This 20 basis points improvement was attributed to better absorption of fixed costs.

Market Dynamics

While the company faced lower offtake on specific export customer programs for light metal casting products, it reported that the new tariff situation in the USA has not impacted sales in Q2. The management continues to monitor the evolving tariff situation, expressing hope that ongoing diplomatic dialogues will provide necessary clarity and stability on policy matters.

Half-Year Performance

For the half-year:

• Total revenue stood at ₹1,807.80 crore
• Profit After Tax (PAT) reached ₹40.00 crore, marking a 30.1% year-on-year increase

Management Commentary

Harish Lakshman, Chairman & Managing Director of Rane Madras, stated, "Our Q2 results demonstrate the company's resilience and ability to capitalize on market opportunities. The significant growth in net profit reflects our operational efficiency and strategic initiatives. We remain cautiously optimistic about the future, considering the evolving global trade dynamics."

Future Outlook

While the company has not provided specific forward-looking statements, it has indicated that it continues to monitor the tariff situation, particularly in relation to its international business. The management's focus on operational efficiency and strategic growth in key segments suggests a positive outlook, albeit with careful consideration of external market factors.

Rane Madras's strong performance in Q2 underscores its position as a preferred supplier to major OEMs and aftermarket customers in India and abroad. The company's diverse product portfolio, serving various industry segments including passenger vehicles, commercial vehicles, farm tractors, and two-wheelers, continues to be a key strength in navigating market fluctuations.

Rane Madras , a leading auto component manufacturer, has announced robust financial results for the second quarter, demonstrating strong growth across key metrics.

Financial Highlights

Rane (Madras) reported quarterly revenue of 9.20 billion rupees, marking a significant 74% increase compared to 5.30 billion rupees in the same period last year. This impressive top-line growth was accompanied by a 33.2% year-on-year increase in consolidated net profit, reaching ₹21.50 crore for Q2, up from ₹16.10 crore in the same quarter last year.

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a notable uptick of 10.6% year-on-year, rising to ₹82.90 crore from ₹74.90 crore in the same period.

Margin Improvement

Rane Madras demonstrated improved profitability, with the EBITDA margin expanding to 9.0% in Q2, compared to 8.8% in the same quarter of the previous year. This 20 basis points improvement in margin was primarily attributed to better absorption of fixed costs.

Segment Performance

The company witnessed growth across various segments:

• Domestic OE (Original Equipment) sales grew by 6%, driven by higher offtake in the passenger vehicle and farm tractor segments.
• International customer sales increased by 10%, supported by strong demand for steering products.
• Indian Aftermarket sales experienced a substantial 17% growth, although the company noted that these figures are not directly comparable to the same quarter of the previous year due to the restructuring of the Group Aftermarket Product Business.

Market Dynamics

The company stated it experienced no sales impact from new USA tariffs during the quarter. However, Rane Madras noted reduced demand for specific export programs of light metal casting products. The company continues to monitor the evolving tariff situation and remains hopeful that ongoing diplomatic dialogues will provide necessary clarity and stability on the policy front.

Management Commentary

The company's management expressed satisfaction with the quarter's performance, highlighting the significant revenue growth and improved operational efficiency. They also emphasized their continued focus on monitoring market dynamics, particularly regarding international trade policies and specific product demands.

Outlook

With a strong performance in Q2, Rane Madras appears well-positioned to capitalize on the growing demand in both domestic and international markets. The company's ability to achieve substantial revenue growth and improve margins amidst challenging market conditions showcases its operational resilience and strategic focus.

As the auto component sector continues to evolve, Rane Madras remains committed to leveraging its strengths in manufacturing various automotive products, including steering and suspension systems, brake components, and light metal casting components, to serve a diverse range of industry segments.