Rane Engine Valve's PAT narrows in Q3 FY22; Revenue up by 7%

25 Jan 2022 , 03:51 PM

Rane Engine Valve Limited, a leading manufacturer of Engine Valves, Guides, and Tappets today announced financial performance for the quarter (Q3 FY22) and nine months (9M FY22) ended December 31st, 2021.

The company reported a revenue of Rs 99.1 crore for Q3 FY’22 as against Rs 92.60 crore for Q3 FY’21, up by 7% YoY.

Its EBITDA stood at Rs 5.2 crores for the December 2021 quarter against Rs 5.6 crore for the previous corresponding quarter, down by 6.6% YoY. While its EBITDA margin stood at 5.3% for Q3 FY’22 against 6.1% for Q3 FY’21.

Rane engines reported a net loss of Rs 3 crore for the December 2021 quarter against a profit of Rs 14.2 crore for the previous quarter last year, showing a decline of 121% YoY.

“Q3 was a challenging quarter with semiconductor shortage impacting the supply chain across served customers and geographies. The increase in employee costs and other costs impacted profitability. The management team continues to implement various cost reduction and operational improvement initiatives to mitigate the inflationary pressure,” commented L. Ganesh, Chairman, Rane Group.

The company’s total revenue for the 9M period ending December 2021, was Rs 275.5 crore against Rs 206.5 crore for the previous 9M period last year, reflecting an increase of 33.4% YoY.

Its net loss stood at Rs 11.90 crore for the 9M period ending December 2021, as against Rs 5.6 crore for the 9M period ending December 2020, widening by 111.2% YoY.

Rane engine closed at Rs 293.05 against its previous closing price of Rs 283.95, up by Rs 9.10 or 3.20%. Its scrip has touched a intraday high and low of Rs300 and Rs264.30 respectively.