Rane (Madras) Limited reports strong full year results for FY 16

Rane (Madras) Limited reports strong full year results for FY 16

·         Sales & Operational income at Rs. 860.91 Crores up 10.5% over previous year

·         Profits before tax at Rs. 18.66 Crores up 10.8% over previous year 

·         Net Profit at Rs. 14.09 Crores up 13.2% over previous year

Rane (Madras) Limited (RML), (BSE: 532661, NSE: RML), a leading manufacturer of steering and suspension products and die casting products, today announced its results for the year ended 31^st March 2016. 

The Company registered Sales & Operating Income of Rs. 860.91 Crores for the current year as against   Rs. 778.88 Crores for the previous year. In the domestic market, steering and linkages business registered good growth as we secured new business in Passenger Car and Medium & Heavy Commercial Vehicle segments. However, the decline in Farm Tractor and Small Commercial Vehicle volumes created headwinds to our sales performance. 

The Company had a challenging time in the After market segment, but with the introduction of several new products, managed a healthy growth.  In the exports market, die-casting business experienced marginal decline due to unfavourable product mix.  Export sales constituted 23% of the total sales for the year. 

The company was able to mitigate cost pressure such as inflationary labour and power cost, exceptional expenditure such as VRS and acquisition related expenses, through stringent cost control measures.

“We are pleased with the continuing progress of RML and its performance in FY16. We have started focusing on business from Global Tier 1 component manufacturers and seeing good momentum in this space. We have continued to win new businesses from OEMs in India and globally. We have also enhanced our capabilities and invested in state-of-the-art R&D facility to help us design and validate new products that would meet our global customer requirements.” said L. Ganesh, Chairman, Rane Group.

The summary of standalone financial performance is given below:-                        

(Rs. Crores)	2015-16	2014-15
Sales and Operating Revenues	860.91	778.88
Other Income	1.58	1.09
Operating PBT (before exceptional items)	21.35	20.08
Exceptional [(Expenses)/ Income] Items*	(2.70)	(3.24)
Profit before Tax	18.66	16.84
Profit after Tax	14.09	12.44
Earnings per share (EPS) (Rs.)	12.77	11.20

*Exceptional item includes Voluntary Retirement Scheme (VRS) expenditure of Rs. 2.70 Crores for the year ended March 31, 2016 and Rs. 3.24 Crores for the year ended March 31, 2015.

During the quarter ended March 31, 2016, the Company has acquired Rane Precision Die Casting Inc., Kentucky, USA (RPDC) through its Wholly Owned Subsidiary (WOS) Rane (Madras) International Holdings B.V, The Netherlands (RMIH). During the quarter the Company has invested a sum of USD 2.02 million into RMIH / RPDC through a combination of equity and loan.

For further information please contact:

Ms. Pavithra Lakshmanan brand-comm               Tel: +91 98409 96840 Email: rane@brand-comm.com

Ms. V Usha Corporate Communications, Rane Group Tel: +91 44 4229 2443    E-Mail: v.usha@rane.co.in

About Rane (Madras) Ltd.

Established in 1960, Rane (Madras) Limited (RML) is part of the Rane Group of Companies, a leading auto component group based out of Chennai. It has two divisions namely Steering gear (SGP), Steering and Suspension linkage Products (SSLP) division and Die casting Products division. The Steering division manufactures manual steering gears, hydrostatic steering systems and steering and suspension linkage products. RML holds 39% and 72% market share in India in SGP and SSLP. The Die casting division manufactures low porosity, high-quality aluminium die castings such as steering housings, engine case covers.

About Rane Group

Headquartered in Chennai, India, Rane Group is engaged primarily in manufacturing auto components for well over five decades. Rane Group is a preferred supplier to major OEMs in India and abroad. Through its group companies, it manufactures Steering and Suspension systems, Friction materials, Valve train components, Occupant safety systems, Die-casting products and Aerospace-grade Wiring harnesses. Its products serves a variety of industry segments including Passenger Vehicles, Commercial Vehicles, Farm Tractors, Two-wheelers, Three-wheelers, Railways and Stationary Engines.

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