Rane (Madras) zooms 20% on robust Q3 results


Rane (Madras) zooms 20% on robust Q3 results

  Rane (Madras) is locked in the upper circuit of 20% at Rs 863, also its all-time high on BSE, after the company reported four-fold jump in net profit at Rs 142 million in December 2017 (Q3FY18) quarter.

The company, a leading manufacturer of steering and suspension products and die casting components, had profit of Rs 34 million in the same quarter year ago.

Total net revenue increased by 31.7% to Rs 3.19 billion for Q3FY18 as compared to Rs 2.42 billion in Q3FY17. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 337 basis points at 12.1% for Q3FY18 as against 8.7% in Q3FY17.

The EBITDA margin improved due to increased volume, favourable product mix and improved operational performance. The company attributed robust quarterly performance on account of strong demand from Indian OE customers across vehicle segments. The company experienced robust demand in Indian Aftermarket segment with 46% YoY growth.


“Rane (Madras) posted good set of numbers Jed by pickup in demand from Indian DE customers and improved operational performance. Though the Die Casting Division experienced lower pull from international customers, it continued to improve on operational performance. Higher volume provided operational leverage to improve the operating margin,” said L. Ganesh, Chairman, Rane Group.

The board declared interim dividend of Rs 4.5 per share. The company fixed February 3, 2018 as record date for payment of interim dividend. Till 01:47 PM; a combined 271,977 shares changed hands and there were pending buy orders for 51,508 shares on BSE and NSE.