Rane Madras Ltd announces Q2 FY21 Earnings

Rane (Madras) Limited (NSE: RML; BSE Code:532661), a leading manufacturer of steering and suspension products and light metal casting components today announced its standalone and consolidated financial performance for the second quarter (Q2FY21) and six months (H1FY21) ended September 30th, 2020.

Standalone Q2 FY21 Performance

- Total Revenue was ₹285.7 Crore for Q2 FY21 as compared to ₹282.4 Crore in the Q2 FY20, an increase of 1.2%

- EBITDA stood at ₹29.3 Crore as compared to ₹24.2 Crore during Q2 FY20, an increase of 21.0%

- EBITDA Margin at 10.2% for Q2 FY21 as against 8.6% in Q2 FY20, an increase of 168 basis points (bps)

- Net profit (PAT) stood at ₹6.4 Crore for Q2 FY21 as compared to ₹2.7 Crore in Q2 FY20, an increase of 137.4%

Consolidated Q2 FY21 Performance

- Total Revenue was ₹322.1 Crore for Q2 FY21 as compared to ₹331.2 Crore in the Q2 FY20, a decrease of 2.8%

- EBITDA stood at ₹16.4 Crore as compared to ₹14.8 Crore during Q2 FY20, an increase of 10.8%

- EBITDA Margin at 5.1% for Q2 FY21 as against 4.5% in Q2 FY20

- Net Loss stood at ₹10.0 Crore for Q2 FY21 as compared to Loss of ₹10.8 Crore in Q2 FY20

Operating Highlights for Q2 FY21 - Standalone

- Sales to Indian OE customers grew by 5%. Experienced strong demand from farm tractor segment

- Sales to International customers increased by 6% supported by increase in schedules for Steering products

- Sales to Indian Aftermarket customers increased by 29%

- Fixed cost reduction resulted in 168 bps improvement in EBITDA margin

Operating Highlights for Q2 FY21 - Consolidated

- The US subsidiary experienced 36% drop in sales impacted by lower vehicle demand in US due to Covid-19 and lower volumes from key customers

- Significant drop in sales and under absorption of semi variable manufacturing cost resulted in higher loss

L. Ganesh, Chairman, Rane Group said, "We saw recovery in the demand environment with the gradual opening of the economy in Q2. Aided by strong operational performance by the plants we were able to effectively handle the production ramp up despite the supply chain and labour availability challenges. Strong cost control measures helped in margin improvement. We remain cautiously optimistic about sustenance of the demand post festive season."

Shares of RANE (MADRAS) LTD. was last trading in BSE at Rs.205.9 as compared to the previous close of Rs. 205. The total number of shares traded during the day was 176 in over 66 trades.

The stock hit an intraday high of Rs. 210 and intraday low of 205.25. The net turnover during the day was Rs. 36567.

Source : Equity Bulls

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