Rane (Madras) Limited (NSE: RML; BSE Code:532661), a leading manufacturer of steering and suspension products and die casting components today announced its standalone and consolidated financial performance for the second quarter (O2 FY20) and six months (H1FY20) ended September 30th, 2019.
Standalone Q2 FY20 Performance
- Total Net Revenue was Rs. 282.4 Crore for Q2 FY20 as compared to Rs. 355.6 Crore in Q2 FY19, a decrease of 2O.6%
- EBITDA stood at Rs. 124.2 Crore as compared to Rs. 40.5 Crore during Q2 FY19, a decrease of 40.3%
- EBITDA Margin at 8.6% for Q2 FY20 as against 113% in Q2 FY19, a decline of 282 basis points (bps)
- Net profit (PAT) stood at Rs. 2.7 Crore for Q2 FY20 as compared to Rs. 13.8 Crore in Q2 FY19, a decrease of 80.4%
Consolidated Q2 FY20 Performance
- Total Net Revenue was Rs. 331.2 Crore for Q2 FY20 as compared to Rs. 400.8 Crore in Q2 FY19, a decrease of 17.3%
- EBITDA stood at Rs. 14.8 Crore as compared to Rs. 38.3 Crore during Q2 FY19, a decrease of 61.5%
- EBITDA Margin at 4.5% for Q2 FY20 as against 9.5% in Q2 FY19, a decline of 509 basis points (bps)
- Net loss stood at Rs. 10.8 Crore for Q2 FY20 as compared to Net Profit of Rs. 6.8 Crore in Q2 FY19, a decrease of 257.8%
Operating Highlights for Q2 FY20 - Standalone
- Sales to Indian OE customers declined 31%. Experienced volume drop across vehicle segments.
- Sales to International customers declined 14% driven by drop in volume for Die casting products
- Sales to Indian Aftermarket customers dropped 16%
- Lower volume and unfavourable mix resulted in 282 bps drop in EBITDA margin
Operating Highlights for Q2 FY20 - Consolidated
- The US subsidiary stabilized on the supplies to the new program which helped to partially mitigate the drop in volumes in few existing products.
"The volume drop in domestic market resulted in significant challenges to the India operations We expect the sluggish demand environment in India to continue for few quarters. The management is working on various cost reduction projects to partially mitigate the impact of volume drop. The US subsidiary is stabilizing the volumes on new businesses and working on several systemic operational improvement projects." - L. Ganesh, Chairman, Rane Group.
Shares of RANE (MADRAS) LTD. was last trading in BSE at Rs.282 as compared to the previous close of Rs. 262.65. The total number of shares traded during the day was 2684 in over 218 trades.
The stock hit an intraday high of Rs. 284.55 and intraday low of 268.05. The net turnover during the day was Rs. 749635.