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.

Rane Madras , a leading auto components manufacturer, has reported a stable financial performance for the first quarter of the fiscal year. The company's standalone net profit stood at Rs. 18.72 crore for the quarter ended June 30, marginally lower than the Rs. 18.77 crore reported in the same quarter last year.

Revenue Growth and Financial Highlights

The company witnessed a notable increase in its revenue from operations, which rose to Rs. 880.88 crore, up from Rs. 817.65 crore in the corresponding quarter of the previous year, marking a growth of about 7.7%. This growth in revenue reflects the company's resilience and ability to capitalize on market opportunities despite challenging economic conditions.

Consolidated Performance

On a consolidated basis, Rane Madras showed improvement in its bottom line. The company posted a net profit of Rs. 18.53 crore, significantly higher than the Rs. 14.63 crore reported in the same quarter of the previous year, representing a growth of approximately 26.7%.

Operational Efficiency

The company's operational efficiency is evident from its ability to manage costs effectively. Despite the increase in revenue, the total expenses saw a controlled rise from Rs. 797.15 crore to Rs. 856.69 crore on a standalone basis.

Earnings Per Share and Capital Structure

The basic earnings per share (EPS) for the standalone results remained steady at Rs. 6.77. The company's paid-up equity share capital increased to Rs. 27.64 crore from Rs. 16.27 crore, following the implementation of an amalgamation scheme.

Exceptional Items

Rane Madras reported exceptional items of Rs. 1.01 crore related to voluntary retirement expenditure during the quarter. This move is likely aimed at optimizing the workforce and improving long-term operational efficiency.

Risk Management Committee Reconstitution

In a significant governance update, the company announced the reconstitution of its Risk Management Committee. The new committee structure is as follows:

This restructuring of the Risk Management Committee underscores the company's commitment to robust corporate governance and effective risk mitigation strategies.

Conclusion

While Rane Madras has shown resilience in its Q1 performance, the company continues to navigate a dynamic automotive market. The steady financial results, coupled with strategic initiatives like the reconstitution of the Risk Management Committee, position the company to address future challenges and opportunities in the auto components sector.