Rane Group, a leading auto parts house, announced that its companies have secured new business orders worth ₹220 crore, including ₹170 crore in export orders during Q2 FY25 as both domestic and export businesses continue to grow amid some challenges.
In the September 2024 quarter, Rane Madras secured international orders worth ₹140 crore and domestic orders worth ₹30 crore, including ₹25 crore in the EV segment. Rane Brake, ZF Rane, and Rane Engine Valve also won orders during the quarter.
The group’s total revenue for Q2 FY25 slightly decreased to ₹920 crore compared to ₹930.5 crore in the same period last year.
During the Q2 earnings call, Harish Lakshman, Chairman of Rane Group, said the group will likely reduce the initially planned capex for FY25 from ₹400 crore. However, the three-year target of ₹1,000 crore remains intact. ZF Rane will account for 45 per cent of this amount, while Rane Madras and Rane Steering System will spend ₹550 crore.
Lakshman stated that over 80 per cent of the capex would be allocated to capacity expansion to meet growing demand in domestic and export markets, which are witnessing growth exceeding 20 per cent. The remaining 20 per centwill be used for capability building, engineering, and R&D.
He also updated on the ongoing amalgamation of Rane Madras, Rane Engine Valve, and Rane Brake Lining. A no-objection certificate from the Bombay Stock Exchange and the National Stock Exchange was obtained on July 18, 2024. Following this, a joint application was filed with NCLT Chennai on August 26, 2024, with secured creditors’ consent. Meetings of shareholders and unsecured creditors are scheduled for November 20 and 21, 2024, respectively.
Commenting on the domestic automobile market, Lakshman noted a slowdown in demand during the first half of FY25. However, festive season sales showed promising signs. “We will need to wait and see if this momentum sustains for the rest of the fiscal year,” he said.