Rane Engine Valve Ltd (REVL), a leading manufacturer of engine valves, guides and tappets, has reported a net profit of Rs 61.9 crore during the quarter ended September 2016, as compared to loss of Rs 12.5 crore a year ago.
The company is a major supplier to auto firms like Mahindra & Mahindra, Renault-Nissan, Maruti Suzuki, Honda Motorcycles and Tata Motors.
REVL had exceptional income of Rs 93.9 crore on account of profit on sale of remaining portion of Alandur land
Total operating income rose by four per cent to Rs 90.7 crore from Rs 87.6 crore in the Q2FY16.
"REVL continued to improve its operational performance. Our de-bottlenecking efforts to improve plant production helped us capitalize on strong demand in select market segments. We were able to reduce the operational loss with our focused efforts on material cost reduction, and stringent fixed cost reduction. These initiatives will continue in the upcoming quarters to improve operational efficiency and deliver profitable growth", said L Ganesh, Chairman, Rane Group.
The company said that it has experienced strong demand from Indian and International passenger car OEMs, while it had lower offtake in both India and international aftermarket segment.
The increase in other expenses is primarily attributed to asset writeoff based on the technical obsolescence and unusable assets arising out of shutting down of Alandur and Peenya plants.