Chennai-based Rane Engine Valve (REVL), a leading manufacturer of engine valves, guides and tappets today announced financial performance for the second quarter (Q2 FY19) and six months (H1 FY19) ended September 30th, 2018.
REVL manufactures engine valves, valve guides and tappets for various lC engine applications. REVL caters to all segments of automobile industries such as PV, CV, Tractors, 2W, 3W, stationary -engines, railways and marine engines.
H1 FY19 performance
According to the reports, REVL’s total net revenue was Rs 210.9 crore for H1 FY19 as compared to Rs 183.1 crore in H1 FY18, an increase of 15.2 percent. EBITDA stood at Rs 6.7 crore as compared to Rs 9.8 crore during H1 FY18, a decline of 31.5 percent while the margin stood at 3.2 percent for H1 FY19 as against 5.4 percent in H1 FY18. Their profit after tax (PAT) was reported at a loss of Rs 8.5 crore for H1 FY19 as compared to a loss of Rs 5 crore in H1 FY18.
Q2 FY19 Performance
The total net revenue was Rs 107.8 crore for Q2 FY19 as compared to Rs 94.1 crore in Q2 FY18, an increase of 14.60 percent. EBITDA stood at 3.4 crore as compared to Rs 5.2 crore during Q2 FY18, a decline of 35.1 percent. REVL has reported a net loss of Rs 4.1 Crore for Q2 FY19 as compared to a loss of Rs 2.4 Crore in Q2 FY18.
Operating highlights for Q2 FY19
REVL reveals that in the second quarter of this fiscal year, they had experienced strong demand from Indian OE customers across segments and higher offtake by international customers. However, the domestic aftermarket sales declined by about 6 percent.
The company declared that the EBITDA margin declined by 238 bps on the back of adverse forex movement, unfavourable product mix, increase in raw material and employee cost. It claims that better operational performance helped to partially offset the inflationary pressure.
L Ganesh, chairman, Rane Group said, "REVL capitalised on robust demand environment to post strong revenue growth. We experienced inflationary pressure on commodity and employee cost. The plants improved the operational performance particularly on delivery and lower internal rejections. We continue to work on operational improvement initiatives and mitigate margin pressure through improved operational performance in the upcoming quarters."
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