Rane Madras reports net loss of Rs 14.5 crore in Q1 FY24

Auto component maker Rane reported a consolidated net loss of Rs 14.5 crore in the April-June quarter (Q1 FY24). The company posted a net loss of Rs 3.3 crore in the same quarter a year ago.

The company reported a total income of Rs 153.06 crore during the period ended June 30, 2023, down 8% as compared to Rs 141.89 crore during the same period a year ago.

According to Rane Madras, a major customer has announced a recall of certain vehicles, for possible defects suspected in a part of the steering tie rod, supplied by the company and used in such vehicles. Since the matter is under discussion with the customer, the exceptional item for the quarter ended June 30, 2023 includes a provision towards one time warranty related costs, the company added.

"The company sustained sales momentum, albeit a decline in volume in the Farm Tractor segment. The demand from international customers remained robust. Further to the board’s decision, the company is exploring various options to divest the LMCA business. Demand across major vehicle segments continues to remain robust. We are closely monitoring the evolving economic indicators and continuing to prioritise cost reduction and operational improvement programmes in the upcoming quarter," said L. Ganesh, Chairman, Rane Group.

The company reported an EPS (earning per share) of Rs 6.70 for the period ended June 30, 2023, as compared to Rs 7.49 for the period ended June 30, 2022.