Rane Madras Limited announces earnings for Q3 FY21

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 third quarter (Q3 FY21) and nine months (9MFY21) ended December 31, 2020.

Standalone Q3 FY21 Performance

- Total Revenue was Rs. 398.8 crore for Q3 FY21 as compared to Rs. 280.2 crore in the Q3 FY20, an increase of 42.3%.

- EBITDA stood at Rs. 50.8 Crore as compared to Rs. 24.6 Crore during Q3 FY20, an increase of 106.2%.

- EBITDA Margin at 12.7% for Q3 FY21 as against 8.8% in Q3 FY20, an increase of 395 basis points (bps)

- Net profit (PAT) stood at Rs. 21.5 crore for Q3 FY21 as compared to Rs. 3.7 crore in Q3 FY20, an increase of 475.8%

Consolidated Q3 FY2l Performance

- Total Revenue was Rs. 435.2 crore for Q3 FY21 as compared to Rs. 320.5 crore in the Q3 FY20, an increase of 35.8%

- EBITDA stood at Rs. 39.3 Crore as compared to Rs. 18.2 Crore during Q3 FY20, an increase of 116.1%

- EBITDA Margin at 9.0% for Q3 FY21 as against 5.7% in Q3 FY20, an increase of 336 basis points (bps)

- Net profit (PAT) stood at Rs. 5.5 Crore for Q3 FY21 as compared to Loss of Rs. 77.2 Crore in Q3 FY20, an increase of 176.6%

Operating Highlights for Q3 FY21 - Standalone

- Sales to Indian OE customers grew by 37%. Experienced strong demand across vehicle segment

- Sales to International customers increased by 82% supported by increase in schedules for Steering and Light Metal Casting products

- Sales to Indian Aftermarket customers increased by 14%

- EBITDA margin improved by 395 bps cost reduction initiatives and higher volume helped to mitigate unfavourable mix and material cost increase

Operating Highlights for Q3 FY21 - Consolidated

The US subsidiary experienced 13% drop in sales impacted by lower vehicle demand in US due to Covid-19 and lower volumes from key customers

- Despite operational improvements, the drop in volumes resulted in higher loss

"We saw strong recovery in the demand environment in Q3. This was well supported by the production ramp up in the plants. Cost reduction initiatives continued to yield results. We are seeing volatility in customer schedules as they experience supply constraints on certain components. We continue the cost control measures to manage the commodity price increases." L. Ganesh, Chairman, Rane Group.

Shares of RANE (MADRAS) LTD. was last trading in BSE at Rs.250.15 as compared to the previous close of Rs. 250.85. The total number of shares traded during the day was 527 in over 81 trades.

The stock hit an intraday high of Rs. 265.9 and intraday low of 245. The net turnover during the day was Rs. 132628.

Source : Equity Bulls

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