Rane (Madras) Ltd’s (RML) consolidated net profit for the March quarter rose nearly six-fold to ₹37 crore compared to the corresponding period last year.
Revenue growth across segments
Revenue rose 16% to ₹1,052 crore. Sales to domestic OE customers grew by 11%, mainly due to higher offtake across vehicle segments. Sales to international customers increased by 27%, supported by strong offtake of steering products.
Sales to Indian aftermarket customers grew by 16%. However, sales of aftermarket products are not comparable to Q4 FY25 due to the restructuring of the Aftermarket Product Business. On a comparable basis, growth stood at 5%.
Capex and cash flows
RML incurred capital expenditure of ₹53 crore during the quarter, taking full-year capex to ₹191 crore. Investments were directed primarily towards capacity expansion in steering, engine and brake components. The company generated free cash flows of ₹84 crore.
Order wins and pipeline
RML secured new business wins with an annualised sales value of ₹3 crore during the quarter, taking full-year order wins to ₹712 crore across domestic OEM and international customers.
Outlook remains cautious
Looking ahead to FY27, the company remains cautiously optimistic about the demand environment. While domestic demand remains stable, it continues to monitor external risks that could influence the operating environment.
Factors such as geopolitical developments, volatility in crude oil and commodity prices, exchange rate movements and potential supply chain disruptions could impact production costs.
Focus on cost efficiency
Against this backdrop, the company expects to drive cost-saving initiatives to mitigate external headwinds and deliver further margin improvement in FY27. This will be supported by new business ramp-ups and continued efficiency initiatives across its manufacturing plants.