Rane Madras Ltd announces Q1FY21 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 first quarter (Q1 FY21) ended June 30, 2020.

During the Quarter (Q1 FY21), the entire month of April and half of May were lost owing to the lockdown imposed due to COVID-19 pandemic. As such, the results for Q1 FY21 are not comparable to the corresponding period of the previous year due to the truncated period of operations during the current quarter.

Standalone Q1 FY21 Performance

- Total Net Revenue was ₹96.3 Crore for Q1 FY21 as compared to ₹297.2 Crore in Q1 FY20
- EBITDA stood at ₹-12.5 Crore as compared to ₹25.5 Crore during Q1 FY20
- Net Loss stood at ₹21.9 Crore for Q1 FY21 as compared to Profit of ₹3.2 Crore in Q1 FY20

Consolidated Q1 FY21 Performance

- Total Net Revenue was ₹114.3 Crore for Q1 FY21 as compared to ₹346.2 Crore in Q1 FY20
- EBITDA stood at ₹-27.9 Crore as compared to ₹16.5 Crore during Q1 FY20
- Net Loss stood at ₹41.9 Crore for Q1 FY21 as compared to Loss of ₹10.3 Crore in Q1 FY20

Operating Highlights for Q1 FY21 - Standalone

- The plants resumed operations safely and started supplying to customers as the market re-opened gradually.
- The company prioritized on health and safety of the employees, provided necessary support to the suppliers and worked on cost reduction initiatives.
- The company experienced strong pickup in demand from Farm Tractor segment after easing of the lockdown.
- The company availed moratorium facility offered by banks to restrict cash outflow and do not foresee major challenges in meeting its financial obligations.

Operating Highlights for Q1 FY21 - Consolidated

- Sales of US subsidiary was also affected by Covid-19 pandemic
- Continue to work on operational improvements and cost savings initiatives

"Q1FY21 was not a typical quarter due to Covid-19 related shutdown of operations. The company took several measures to restart production safely and addressed the customer demand. We are experiencing positive momentum in the demand environment. However, we remain cautious on the recovery to Pre-Covid levels given the partial lockdown measures continuing in several places. We continue to execute the cost reduction and operational improvement initiatives to reduce the impact of lower volume." - L. Ganesh, Chairman, Rane Group.

Shares of RANE (MADRAS) LTD. was last trading in BSE at Rs.208 as compared to the previous close of Rs. 206.15. The total number of shares traded during the day was 3353 in over 171 trades.

The stock hit an intraday high of Rs. 213.95 and intraday low of 208. The net turnover during the day was Rs. 707258.

Source : Equity Bulls

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