Rane (Madras) Ltd (RML) witnessed a 66% decline in standalone net profit for the December quarter, totaling ₹11 crore compared to the corresponding period last year. The leading manufacturer of steering and suspension products attributed the downturn to reduced demand in the farm tractor segment and a decline in the off-take of steering products in specific export regions.
While revenue from operations experienced a marginal 1% dip, amounting to ₹521 crore, finance costs nearly doubled, reaching ₹15 crore, as stated in the company’s official statement. Sales to Indian original equipment customers grew by 1%, with commercial vehicle segment growth offset by decreases in the farm tractor and passenger car segments. Export sales, on the other hand, showed a 1% increase.
RML noted a robust demand for light metal casting products, but this was partially offset by a decline in steering products in specific geographic regions. Sales to Indian aftermarket customers saw a decline of 4%, contributing to the overall challenges faced by the company.
L. Ganesh, Chairman of Rane Group, commented on the situation, stating, “Despite a strong order book, RML continues to face demand challenges in the domestic served segments. We are prioritizing cost-saving initiatives to mitigate the impact on profitability.”
