Rane Engine Valve Ltd announces Q2FY21 earnings

Rane Engine Valve Limited (NSE: RANEENGINE; BSE Code:532988), a leading manufacturer of Engine Valves, Guides and Tappets today announced financial performance for the second quarter (Q2 FY21) and six months (H1 FY21) ended September 30th, 2020.

Q2 FY21 Performance

- Total Revenue was ₹83.4 Crore for Q2 FY21 as compared to ₹94.6 Crore in the Q2 FY20, a decrease of 11.9%

- EBITDA stood at ₹3.9 Crore as compared to ₹4.5 Crore during Q2 FY20, a decrease of 13.9%

- EBITDA Margin at 4.6% for Q2 FY21 as against 4.7% in Q2 FY20, a decrease of 11 basis points (bps)

- Net loss stood at ₹3.5 Crore for Q2 FY21 as compared to Loss of ₹3.7 Crore in Q2 FY20

H1 FY21 Performance

- Total Revenue was ₹113.9 Crore for H1 FY21 as compared to ₹198.6 Crore in the H1 FY20, a decrease of 42.7%

- EBITDA stood at ₹-12.7 Crore as compared to ₹7.8 Crore during H1 FY20, a decrease of 263.4%

- EBITDA Margin at -11.1% for H1 FY21 as against 3.9% in H1 FY20

- Net loss stood at ₹19.8 Crore for H1 FY21 as compared to Loss of ₹7.9 Crore in H1 FY20

Operating Performance for Q2 FY21

- Sales to Indian OE customers declined 8%. Volume drop in passenger car segment particularly diesel vehicles impacted the sales.

- Sales to International customers declined 15%. Lower offtake from key customers

- Better fixed cost control and reduction in manufacturing costs due to improvement in operational performance helped to mitigate adverse product mix and manage the EBITDA margin despite drop in volume

Commenting on the results, L. Ganesh, Chairman, Rane Group said, "We saw gradual improvement in the demand environment with the opening of the economy. The plant operations faced supply chain and labour availability challenges while ramping up production levels. The cost reduction measures and better operational performance helped to manage the margin despite lower volume. We remain cautiously optimistic about sustenance of the demand post festive season."

Shares of RANE ENGINE VALVE LTD. was last trading in BSE at Rs.206.1 as compared to the previous close of Rs. 203. The total number of shares traded during the day was 48 in over 21 trades.

The stock hit an intraday high of Rs. 206.1 and intraday low of 203.3. The net turnover during the day was Rs. 9814.

Source : Equity Bulls

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