Rane Madras' EBITDA and PAT narrowed for December quarter, stock tumbled over 6%

Rane (Madras) Limited announced financial results for the quarter ending December 2021. The company reported a significant decrease in its PAT and EBITDA, which left investors discontent, plunging the share over 6%.

The company reported consolidated revenue of Rs 440.50 crores for the quarter ending December 2021, against Rs 435.20 crore for the previous corresponding quarter, up by 1.2% YoY.

The company reported an EBITDA of Rs 14.90 crore for Q3 FY’22 as compared to Rs 39.30 crore for Q3 FY’21, reflecting degrowth of 62.2%.Company’s EBITDA margin stood at 3.4% for Q3 FY’22 against 9.0% in Q3 FY’21.

Rane’s share closed at Rs 392.85, down by Rs 26.40 or 6.30% against its previous closing price of Rs 419.25. It touched an intraday high and low of Rs 424.90 and Rs 375 respectively.

Company’s net loss for the quarter ending December 2021 stood at Rs 4.3 crore as against a net profit of Rs 5.5 crore for the previous corresponding quarter, a decline of 178.5%.

Sale volume to OE customers declined by 4% mainly due to a significant drop in sales to the Farm Tractor segment on account of unseasonal rains and higher dealer inventory. However, OE sales revenue registered a growth of around 5% on account of the inflationary impact in the selling price realization. Sales to Aftermarket customers grew 9% supported by demand across pan India. Sales to international customers shortened by 10%.