Rane Engine Valve has posted a marginal dip in sales at Rs 73.27 crore for the third quarter – from Rs 74.20 crore the previous corresponding quarter – on the back of a slowdown in the serviced market of passenger cars and industrial engine segments in the domestic market. The company's profit after tax increased nearly four times to Rs 11.82 crore.
Exports to Europe too slowed during the quarter ended December 31, 2011, compared to the same quarter the previous year. Increase in raw material costs due to foreign exchange fluctuations, power and fuel costs also impacted the company's results. This has not affected the ongoing modernisation of the company's plant in Chennai which is expected to be completed by June this year.
Rane Engine Valve has declared an interim dividend of Rs 7.50 for each equity share on the paid-up capital of 51,50,992 equity shares of Rs 10 each for the year ending March 31, 2012. This will be payable to eligible shareholders as on the record date – February 7, 2012.