Rane Holdings Limited, the Chennai-based auto components manufacturer, reported a 263 per cent jump in consolidated net profit to ₹185.4 crore for the second quarter ended September 30, 2024, compared to ₹51.1 crore in the same period last year. The surge was primarily driven by exceptional items related to settlements with NSK Ltd. Japan.
The shares of Rane Holdings Limited ended 3.71 per cent lower at ₹1,790 on the NSE today.
Despite the profit increase, the company’s total revenue declined marginally by 1.1 per cent to ₹920 crore from ₹930.5 crore in Q2 FY24. However, EBITDA improved by 16.6 per cent to ₹84.7 crore, with margins expanding to 9.2 per cent from 7.8 per cent a year ago.
The company’s domestic original equipment (OE) customer revenue dropped by 3 per cent due to lower demand from farm tractors and commercial vehicle segments. International customer revenues decreased by 10 per cent, primarily due to the divestment of LMCA business, while the Indian aftermarket segment grew by 5 per cent.
The results are not directly comparable with the previous year due to two significant corporate actions – the divestment of LMCA in Q2 FY24 and the acquisition of Rane Steering Systems (formerly Rane NSK Steering Systems) in Q2 FY25. The company continues to serve major OEMs in India and abroad, manufacturing steering and suspension systems, friction materials, and other auto components.
