Rane Holdings Limited announces Q4, FY2020 results

Rane Holdings Limited (NSE: RANEHOLDIN; BSE Code: 505800), the holding Company of Rane group today announced financial performance for financial year (FY20) ended March 31, 2020.

Group Aggregate Performance - FY20

- Total Net Revenue decreased by 17.4% to Rs. 4,436.8 Crore in FY20 from Rs. 5,369.4 Crore in FY19

- EBITDA stood at Rs. 350.9 Crore as compared to Rs. 584.5 Crore during FY19, a decrease of 40.0%

- EBITDA Margin at 7.9% for FY20 as against 10.9% in FY19

- PBT (before exceptional items) stood at Rs. 73.7 Crore for FY20 as compared to Rs. 321.0 Crore in FY19, a decrease of 77.0%

Consolidated Financials - FY20

- Total Net Revenue decreased by 15.0% to Rs. 2,184.0 Crore in FY20 from Rs. 2,570.3 Cr in FY19

- EBITDA stood at Rs. 170.9 Crore as compared to Rs. 250.9 Crore during FY19, a decrease of 31.9%

- EBITDA Margin at 7.8% for FY20 as against 9.8% in FY19

- PBT (before exceptional items) stood at Rs. 43.2 Crore for FY20 as compared to Rs. 211.6 Crore in FY19, a decrease of 79.6%

Corporate Action

A final dividend of Rs. 4/- per equity share has been recommended by the Board of Directors on the paid-up capital of 1,42,77,809 of Rs. 10/- each. The total dividend for the year ending March 31, 2020 is Rs. 8/- per equity share including an interim dividend of Rs. 4/- per equity share declared on February 6, 2020 and paid on February 26, 2020.

Group's Key Business Highlights for FY20

- Revenue from Indian OE customers declined by 22% due to lower volumes across vehicle segments

- Revenues from International customers declined by 8%. Drop in steering products and light metal casting products partially offset by growth in occupant safety products

- Revenue from Indian aftermarket segment declined by 5% (comparable basis). This drop was mainly due to lockdown in the last week of March 2020.

- EBITDA margin declined by 298 bps due to lower volumes

- There was an exceptional expense of Rs. 104.6 crores made by Rane NSK towards estimated warranty provision in FY20 as against Rs. 31.3 crores in FY19.

- An impairment of Rs. 37.58 Crores is recognized by RML (Standalone) in FY20 considering the possible adverse economic impact of Covid-19 on the future revenue projections of the overseas subsidiary company.

Shares of RANE HOLDINGS LTD. was last trading in BSE at Rs.481.25 as compared to the previous close of Rs. 401.05. The total number of shares traded during the day was 24006 in over 875 trades.

The stock hit an intraday high of Rs. 481.25 and intraday low of 392.7. The net turnover during the day was Rs. 11447071.

Source : Equity Bulls

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