Rane Holdings Limited, the holding Company of Rane group has announced its financial performance for the first quarter (Q1FY24) ended June 30th, 2023. The company’s total revenue was Rs. 897.7 Crore in Q1 FY24 compared to Rs. 821.1 Crore in Q1 FY23, an increase of 9.3%. Net profit stood at Rs. 12.1 Crore for Q1 FY24 compared to Rs. 20.6 Crore in Q1 FY23, a decrease of 41.3%.
Revenue from Indian OE customers grew by 5% supported by strong growth across vehicle segments. Revenues from International customers increased by 29% driven by higher off-take across steering, valve train, light metal casting and occupant safety products. Revenue from Indian aftermarket segment decreased by 2%.
Commenting on the performance, L. Ganesh, Chairman & Managing Director, Rane Holdings Ltd., said, “Q1 FY24 was an eventful quarter for Rane Group companies with demand remaining strong across major customer segments in India and International markets. Focused cost reduction initiatives and favourable material price trend resulted in profitability improvement. 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 programs in the upcoming quarter.”
Rane (Madras) Limited, a leading manufacturer of steering and suspension products and light metal casting components announced its standalone and consolidated financial performance for Q1.
The company’s total revenue was Rs. 532.1 Crore for Q1 FY24 compared to Rs. 501.0 Crore in the Q1 FY23, an increase of 6.2%. Net profit stood at Rs. 3.0 Crore for Q1 FY24 compared to ₹20.1 Crore in Q1 FY23.
Commenting on the performance, L. Ganesh, stated, “RML sustained sales momentum albeit 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 programs in the upcoming quarter.”
Another Rane Group company, Rane Brake Lining Limited, a leading manufacturer of Brake Linings, Disc Pads and Clutch Facings also announced its Q1 results. The company posted total revenue of Rs. 153.1 Crore for Q1 compared to Rs. 141.9 Crore in Q1 FY23, an increase of 7.9%.
Sharing his thoughts, L. Ganesh said, “The favourable demand environment in Q1 FY 24 helped RBL sustain the growth momentum. 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 programs in the upcoming quarter.”