New Delhi, January 31, 2025 – RACL Geartech Ltd (NSE: RACLGEAR, BSE: 520073) has released its Unaudited Standalone and Consolidated Financial Results for the quarter ended December 31, 2024, during its Board Meeting held on January 31, 2025.
Key Financial Highlights (Q3 FY24)
Consolidated Performance
| Particulars | Q3 FY24 (31.12.2024) | Q3 FY23 (31.12.2023) | % Change (YoY) |
|---|---|---|---|
| Revenue from Operations | 112.79 | 113.34 | (0.5%) |
| Total Income | 113.05 | 115.27 | (1.9%) |
| Total Expenses | 103.91 | 98.65 | 5.3% |
| Profit before Tax (PBT) | 9.14 | 16.62 | (44.9%) |
| Net Profit (PAT) | 6.54 | 12.02 | (45.6%) |
| Earnings Per Share (EPS) | 6.07 | 11.15 | (45.5%) |
Segment-Wise Performance
RACL Geartech continues to operate as a single-segment entity focused on the manufacturing of automotive components.Corporate Announcements
1. Revenue Projection for FY25/26
- The Board has approved an annual revenue target of INR 525 Cr (+/-5%) for the financial year 2025-26, considering market conditions.
2. KTM AG Inventory Impact
- The company acknowledged a temporary downturn due to KTM AG's inventory buildup, affecting Q3 results.
- KTM AG’s restructuring is progressing well, with production resuming from March 25, 2025, which has been factored into FY26 sales projections.
- Diversification in customer base has helped mitigate significant risks.
3. Capital Expenditure & Fundraising
- RACL Geartech plans an investment of INR 150-175 Cr over the next three yearsto support:
- Technology upgradation
- Backward integration
- Planned growth for nominated projects
- The Board has delegated authority to the Financial Affairs Committee to explore alternative funding options of up to INR 100 Cr.
Management Commentary
The management remains optimistic about the company’s growth trajectory despite short-term setbacks. The investment strategy and customer diversification are expected to stabilize financial performance in the upcoming quarters.Outlook & Market Positioning
- Short-Term: Continued challenges from inventory buildup at KTM AG could slightly impact Q4 FY24 performance.
- Mid to Long-Term: With planned capital investments, technology upgrades, and a diversified portfolio, RACL Geartech aims to maintain steady growth and achieve its INR 525 Cr revenue target for FY26.