Rane (Madras) Limited announces Q4, FY20 results

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 financial year (FY20) ended March 31, 2020.

Standalone FY20 Performance

- Total Net Revenue was Rs. 1,119.2 Crore for FY20 as compared to Rs. 1,380.8 Crore in FY19, a decrease of 18.9%
- EBITDA stood at Rs. 98.5 Crore as compared to Rs. 151.7 Crore during FY19, a decrease of 35.1%
- EBITDA Margin at 8.8% for FY20 as against 11.0% in FY19, a decline of 219 basis point (bps)
- Net Loss stood at Rs. 24.4 Crore for FY20 which includes an impairment of Rs. 37.6 Crore as compared to net profit Rs. 47.2 Crore in FY19

Consolidated FY20 Performance

- Total Net Revenue was Rs. 1,291.5 Crore for FY20 as compared to Rs. 1,564.6 Crore in FY19, a decrease of 17.5%
- EBITDA stood at Rs. 60.3 Crore as compared to Rs. 125.9 Crore during FY19, a decrease of 52.1%
- EBITDA Margin at 4.7% for FY20 as against 8.0% in FY19, a decline of 337 basis point (bps)
- Net Loss stood at Rs. 45.5 Crore for FY20 as compared to net profit Rs. 2.4 Crore in FY19

"RML had a challenging year with significant drop in sales on account of demand environment in India and lower volumes on served models in export business. The operational performance continued to improve in steering and light metal casting business in India helping partially offset the volume related impact. The Covid-19 pandemic has significantly affected the business and the company has drafted measures to minimize the impact. This includes a management salary reduction of 10% to 35% from junior to senior level employees respectively."

US Subsidiary

"The Covid-19 pandemic has significantly impacted the future of this business and this has forced the management to revisit the strategy and limit the investments. The board will review the performance of the business closely in the next 12 months and take an appropriate decision, keeping in view the long term interest of shareholders." - L. Ganesh, Chairman, Rane Group.

Shares of RANE (MADRAS) LTD. was last trading in BSE at Rs.216.1 as compared to the previous close of Rs. 214.45. The total number of shares traded during the day was 3752 in over 358 trades.

The stock hit an intraday high of Rs. 230 and intraday low of 215.1. The net turnover during the day was Rs. 831680.

Source : Equity Bulls

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