Rane Holdings Ltd Sees 61.2% Surge in Q1 Profits Despite Revenue Drop

Rane Holdings Ltd reported a 61.2% increase in profit after tax for Q1 2024 at Rs 19.5 crore, up from Rs 12.1 crore in the previous year. However, total revenue fell by 6.71% to Rs 837.4 crore. The EBITDA margin improved slightly from 9% to 9.5%. The domestic OE segment grew 9%, while international revenue dipped by 17% due to divestment in LMCA.

Rane Holdings Ltd, the holding entity of the Rane Group, reported an impressive 61.2% rise in profit after tax for the April-June 2024 quarter, amounting to Rs 19.5 crore. This marks a significant increase from the Rs 12.1 crore profit recorded in the same quarter last year.

Despite the surge in profits, total revenue for the quarter fell by 6.71%, from Rs 897.7 crore in the previous year to Rs 837.4 crore. The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) during this period stood at Rs 79.8 crore, a slight drop from the Rs 80.9 crore registered a year ago. However, the EBITDA margin improved marginally to 9.5% compared to 9% in the same period last year.

The domestic original equipment (OE) segment reported a 9% growth, buoyed by strong performance in the passenger vehicle sector. Conversely, revenue from international customers decreased by 17%, impacted by the divestment of Rane Light Metal Casting Inc., USA (LMCA), while the Indian aftermarket segment saw a 1% decline.

(With inputs from agencies.)