Auto parts firm Rane Madras has reported a 66 per cent decline in its net profit of ₹3.7 crore the quarter ended December 31, 2019 when compared with ₹11 crore in a year-ago period.
Total net revenue of the company fell 18 per cent at ₹280 crore when compared with ₹342 crore.
EBITDA stood at ₹25 crore as against ₹36 crore in the same period last year, a decrease of 31 per cent. EBITDA margin also dropped to 8.8 per cent from 10.4 per cent in Q3 of previous fiscal.
For nine-month period ended December 31, 2019, the company posted a net profit of ₹10 crore when compared with ₹38 crore in the year-ago period, a fall of 75 per cent. Total net revenue declined by 18 per cent at ₹860 crore as against ₹1,045 crore.
During Q3 of this fiscal, sales to Indian OE customers declined 25 per cent, on the back of volume drop across commercial vehicle and tractor segments. Sales to international customers also declined 28 per cent due to by delay in commencement of new business for steering products and drop in volume for die casting products. But sales to Indian after-market customers increased 17 per cent.
“Q3 FY20 was a challenging quarter with steep volume drop in Indian business. The management’s focus on cost reduction initiatives helped partially mitigate the impact on account of volume drop. The US subsidiary, RPDC, experienced lower volumes on new programme,” L Ganesh, Chairman, Rane Group, said in a statement.