Rane Engine Valve reports nearly 4-fold jump in Q2FY25 profit

Rane Engine Valve Ltd, a major manufacturer of engine valves, guides and tappets, reported a 287.7% surge in net profit to ₹5.7 crore for the quarter ended September 30, 2024, compared to ₹1.5 crore in the same period last year. The company's revenue rose 2.7% to ₹147.6 crore from ₹143.7 crore in Q2 FY24.

The company's operational performance showed significant improvement, with the EBITDA increasing 83% to ₹16.8 crore compared to ₹9.2 crore in the same quarter previous year. The EBITDA margin expanded to 11.4% from 6.4% in the year-ago period, primarily driven by favorable material prices and cost-saving initiatives that contributed to a 501 basis points improvement.

Sales to domestic original equipment customers grew 12%, boosted by strong demand from passenger vehicle customers. However, export sales declined 9% amid weak international demand. The Indian aftermarket segment also saw a modest decline of 3%.

For the half year ended September 30, 2024, the company posted a net profit of ₹8.1 crore, up 152.7% from ₹3.2 crore in H1 FY24. Revenue for the six-month period increased 2% to ₹287.8 crore, while EBITDA rose 35.4% to ₹27.5 crore, with the margin improving to 9.6% from 7.2% in the previous year.

Established in 1959, Rane Engine Valve is part of the Rane Group of Companies, an auto component group based out of Chennai. REVL is market leader in Indian OEM and replacement markets. REVL caters to all segments of automobile industries such as PV, CV, Tractors, 2W, 3W, stationary engines, railways and marine engines.

 Through its group companies, the Rane group provides steering and suspension systems, friction materials, valve train components, occupant safety systems and light metal casting components. Its products serve a variety of industry segments including passenger vehicles, commercial vehicles, farm tractors, two-wheelers, three-wheelers, railways and stationery engines.