Rane (Madras) Q2FY2018 revenue up 16.8%; net profit Rs 8cr

Chennai-based steering, suspension components and die-casting products manufacturer Rane (Madras) has reported its standalone financial results for Q2 FY2017-18; revenue at Rs 297 crore, an increase of 16.8 percent (Q2FY17: Rs 254 crore) and for the April-September 2017 period.

For Q2 FY18, the EBITDA stood at Rs 32.5 crore with , an increase of 20.5 percent (FY17: Rs 27 crore)the EBITDA margin came at 10.9 percent, compared to 10.6 percent for the previous year. The net profit (PAT) came at Rs 8.4 crore an increase of 21.1 percent YoY (Q2FY17: Rs 6.9 crore).

For the April-September 2017 period it reported total net revenue of Rs 547.7 crore an increase of 14 percent compared to Rs 480.4 crore for the same period in last year.  EBITDA stood at Rs 56.2 crore, an increase of 13.9 percent (H1FY17: Rs 49.3 crore), the margin remained unchanged at 10.3 percent. The net profit (PAT) stood at Rs 11.1 crore up by 8.4 percent.

The company attributed its financial performance on the strong demand from Indian OE customers across vehicle segments, with a revival in demand in the domestic aftermarket segment (6% YoY), its diecast division experiencing lower offtake from international customers that was offset by higher demand for its steering products, along with improving its operational performance and cost control measures.

“RML had a satisfying quarter on the back of robust demand from Indian OE customers and improved operational performance. Though the diecast division experienced lower pull from international customers, It continued to improve on operational performance. We continue to work on severar initiatives to improve the operating margin,” commented, L Ganesh, chairman, Rane (Madras) Group.