Rane Holdings Ltd has reported a 127% dip in its group aggregate performance for the third quarter ended December due to semiconductor shortage and elevated commodity prices.
Accordingly, the holding company of the Rane group, has reported loss before tax of ₹16 crore against a profit before tax of ₹59 crore. Total revenue increased by nearly 2% to ₹1,392 crore, it said in a statement.
The result included an exceptional expense of ₹46 crore made by Rane NSK towards estimated warranty provision, an exceptional income of ₹9.5 crore on account of US Federal stimulus benefit received by Rane Light Metal Castings Inc. (LMCA) and voluntary retirement expenditure of ₹2.7 crore incurred by Rane Engine Valve Ltd.
During the period, revenue from Indian original equipment customers grew 2%. Sales volume declined in passenger vehicle, farm tractor and two wheeler segments and cost recovery through price increase helped to achieve marginal revenue growth.
Revenues from international customers increased 2%. The demand was partially impacted due to semiconductor shortages.
Revenue from Indian aftermarket segment grew 7% supported by strong demand across pan India. Material cost increase and higher employee cost resulted in drop in EBITDA margin by 420 bps.
“Q3 was a challenging quarter with semiconductor shortage impacting the supply chain and elevated commodity prices reducing the profitability," said L. Ganesh, CMD.
The Group companies are working on cost reduction initiatives to mitigate the inflationary pressures. We hope the third wave of coronavirus in India does not adversely impact the demand environment,” he said.
