Auto components maker Rane (Madras) on Thursday reported a whopping 66.3% fall in standalone net profit to INR 11.2 crore in the October-December quarter over the same period last year. The standalone net profit in the third quarter of FY23 was at INR 33.3 crore, the company said.
The total revenue for the quarter under review stood at INR 521.4 crore as compared to INR 546.3 crore in Q3 of FY23, the company said in a statement.
EBITDA (earnings before interest, taxes, depreciation and amortisation) during the third quarter of the fiscal also fell 31.3% to INR 50.5 crore from INR 73.5 crore during Q3 of FY23, it said.
“RML had a challenging demand environment due to decline in the farm tractor segment and drop in off-take of steering products in select export geographies as well as after-market,” said L Ganesh, Chairman, Rane Group.
Despite a strong order book, the company continues to face demand challenges on the domestic served segments, he said. “We are prioritizing cost savings initiatives to mitigate the impact on the profitability,” Ganesh added.
According to the company, sales to Indian OEM customers grew 1%. Strong offtake for light metal casting products was partially offset by the drop in steering products in select geographies, it said
Besides, sales to domestic aftermarket customers declined by 4%, the company added.