Rane Holdings Q2 net profit jumps to ₹16.53 crore

Rane Holdings said that revenue from Indian OE customers grew 28%.

Rane Holdings Limited’s consolidated net profit for the second quarter ended September 30, rose threefold to ₹16.53 crore on strong growth. Total revenue rose 33% to ₹697 crore from the year-earlier period, the company said. “The group companies experienced strong growth across market segments. Increase in commodity prices impacted the profitability,” said L. Ganesh, CMD.

Demand revival continues to be strong. However, supply constraints due to semiconductor shortage remain a concern. The businesses are working on cost-reduction initiatives to mitigate inflationary pressures,” he said.

Rane Holdings said that revenue from Indian OE customers grew 28%. There was strong demand across vehicle segments, except two-wheelers.

Revenues from international customers increased 33% supported by strong offtake of steering and light metal casting products, while revenue from the Indian after-market segment grew 35%. Material cost increase resulted in drop in EBITDA margin by 176 bps.

Profit before tax included an exceptional income of ₹8.2 crore. This represented an income of ₹9.1 crore on account of U.S. Federal stimulus benefit received by RML (LMCA) and VRS expenditure of ₹0.9 crore incurred by REVL.

CFHL net rises

Separately, Cholamandalam Financial Holdings Limited reported consolidated net profit for the quarter ended September 30 rose 29% to ₹652 crore from a year earlier. During the period under review, Total income rose 10% to ₹3,854 crore, CHFL said in a regulatory filing.Cholamandalam Investment & Finance Co. Ltd. reported a net profit of ₹607 crore, Cholamandalam MS General Insurance Co. Ltd. (CMSGICL) ₹39 crore and Cholamandalam MS Risk Services Ltd. ₹1.12 crore.

There was dip in the net profit of CMSGICL primarily due to COVID claims of ₹66 crore and accelerated amortisation of deferred acquisition costs of ₹139 crore relating to long-term policies pursuant to regulatory communication.

On a standalone basis, the holding company reported a net profit of ₹21.42 crore against loss of ₹3.42 crore.

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