Rane (Madras) Ltd has reported a 36 per cent increase in standalone net profit to ₹19 crore for the year ending March 31, 2017, against ₹14 crore in the previous year. Revenue was up 17 per cent to ₹1,005 crore (₹862 crore).
The Chennai-based manufacturer of steering and suspension products and die-casting component said that better financial performance was due to strong demand from passenger car and commercial vehicle segments for steering and linkages divisions.
On a consolidated basis, the company reported a net profit of ₹5 crore (₹13 crore) on revenue of ₹1,219 crore (₹892 crore).
The board declared a final dividend of ₹4 per equity share.
During the year, the performance in farm tractors segment remained subdued due to superior growth in unserved markets. Commencement of new businesses for steering and die-cast components led the growth from global customers and stringent cost control measures offset the impact of cost escalation, the company said in a communication to the BSE.
L Ganesh, Chairman, Rane Group, said after facing initial delivery issues and higher rejections, the new die-casting plant in Hyderabad is now stabilising. The company continues to pursue new customers in Europe and the US for steering and die-cast components.
Vice-Chairman electedThe board elected Harish Lakshman as Vice-Chairman effective today. He will guide and advise the company on business and policy matters along with the chairman. He has been on the board since March 31, 2004, the communication said.