Rane Group Chairman L. Ganesh
Rane Madras Ltd. (RML) has posted a standalone net loss of ₹196 crore for the quarter ended March from the year-earlier period on account of impairment of ₹223 crore.
The manufacturer of steering and suspension systems had reported a profit of ₹17 crore in the year-earlier period, the company said in a statement.
Revenue from operations rose 24% to ₹561 crore, while cost of materials consumed soared by 20% to ₹348 crore.
Sales to Indian original equipment customers grew 18% supported by strong demand across vehicle segments, while export sales grew 45% driven by strong off-take for steering products. Sales to Indian aftermarket customers increased by 11%.
“RML posted strong revenue growth supported by robust demand environment in India and strong off-take from international customers. Though we see slowdown in major global economies, the growth momentum across vehicle segments in India continues to remain strong,” said L. Ganesh, group chairman.
“The turnaround planned in the U.S. subsidiary had a setback due to poor offtake in the new business developed and even existing business. The board is closely monitoring the situation and will review the best decision regarding the future of this business considering the long term interests of the Company,” he said.
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