Rane (Madras) Limited (NSE: RML; BSE: 532661), a leading manufacturer of steering and suspension products and light metal casting components, has reported its financial results for the third quarter (Q3 FY25) and nine months (9M FY25) ended December 31, 2024.
Financial Performance Overview
Standalone Financials (₹ Crore)
Particulars
Q3 FY25
Q3 FY24
YoY Change
Total Revenue
522.4
521.4
+0.2%
EBITDA
40.1
50.5
-20.5%
EBITDA Margin (%)
7.7%
9.7%
-200 bps
Profit After Tax (PAT)
2.0
11.2
-82.4%
Revenue growth of 0.2% driven by stable operations.
EBITDA is down 20.5% due to inventory provisions, premium freight, and forex losses.
PAT dropped by 82.4% due to increased costs and a lack of significant tax benefits.
Consolidated Financials (₹ Crore)
Particulars
Q3 FY25
Q3 FY24
YoY Change
Total Revenue
523.7
522.4
+0.2%
EBITDA
39.2
48.4
-19.0%
EBITDA Margin (%)
7.5%
9.3%
-180 bps
Net Profit / (Loss)
(0.2)
9.1
-102.2%
Minimal revenue growth of 0.2% YoY.
EBITDA margin contracted to 7.5%, reflecting cost pressures.
Net loss of ₹0.2 crore, compared to a profit of ₹9.1 crore in Q3 FY24.
Segment Performance
By Market (%)
Indian OEM & OES: 55%
Indian Aftermarket: 15%
International OEM & Aftermarket: 30%
By Vehicle Segment (%)
Passenger Vehicles (PV): 71%
Commercial Vehicles (CV): 20%
Farm Tractors (FT): 9%
Key Business Highlights
Sales to Indian OEM customers declined by 4% due to lower demand in the Commercial Vehicle and Farm Tractor segments.
Export sales grew by 2%, providing resilience to overall revenue.
Indian Aftermarket segment sales rose by 14%, showcasing strong domestic replacement demand.
EBITDA margin declined due to:
One-off provisions for obsolete inventory.
Premium freight costs.
Forex reinstatement losses on overseas investments.
Corporate Developments
New Leadership Appointment: The Board has appointed Mr. Harish Lakshman as Managing Director, effective April 1, 2025, for five years, subject to shareholder approval.
Mergers & Restructuring: The merger of Rane Brake Lining Limited and Rane Engine Valve Limited into Rane (Madras) Limited is pending approval from the National Company Law Tribunal (NCLT).
Global Expansion: The company has set up a new subsidiary in Mexico (Rane Automotive Components S. de R.L. de C.V.), with the manufacturing facility under development.
Strategic Outlook
Focus on improving profitability through cost control and efficiency enhancements.
Strengthening export markets to offset domestic slowdowns.
Expansion in the aftermarket segment to capitalize on growing demand.
Completion of ongoing restructuring initiatives to streamline operations.
Rane (Madras) Limited remains committed to long-term growth despite short-term margin pressures driven by product innovation, global expansion, and operational efficiencies.