Steering, suspension and die-cast parts supplier attributes growth to strong domestic market demand from PV and CV segments, growing export orders and stringent cost control measures.
Chennai-based steering, suspension components and die-casting products manufacturer Rane (Madras) has announced its standalone and consolidated financial results for FY2017.
The company’s consolidated revenues for the last fiscal were Rs 1,219 crore with EBITDA Rs 100.46 crore (EBITDA margin of 8.2%) for FY2017 compared to Rs 891.57 crore (EBITDA margin of 9%) in FY2016, an increase of 37 percent. Standalone profit stood at Rs 1,005 crore compared to Rs 862.49 crore, a YoY increase of 17 percent.
The company attributes its strong consolidated growth to burgeoning domestic market demand from the passenger car and commercial vehicle segment for its steering and linkage products; new export business for steering and die-cast components and stringent cost control measures that helped offset the impact of cost escalation. The company says it has been successful in improving the operational performance for its overseas subsidiary, Rane Precision Die Casting Inc.
Commenting on the company’s FY2017 performance, L Ganesh, chairman, Rane Group, said: “We are pleased with the performance of Rane (Madras) in FY2017. The turnaround of operational performance of Rane Precision Die Casting is progressing well. After facing initial delivery issues and higher rejections, the new die-casting plant in Hyderabad is now stabilising. We continue to pursue new customers in Europe and the US for steering and die-cast components and focus on improving operational efficiency across various parts of our business.”
The company’s Board of Directors elected Harish Lakshman as vice-chairman effective May 16, 2017. Lakshman has been on the Board as a director since 2004.