Mumbai, Jan 24 (PTI) Rane (Madras) Ltd, the Chennai-based manufacturer of steering and suspension products and light metal casting components, reported on Monday a 64.1 per cent dip in standalone net profit at Rs 7.7 crore in the December quarter over the year-ago period.
The company, which is part of the Rane Group, had posted a standalone net profit of Rs 21.5 crore in Q3 FY21, as per a release.
The total revenue also declined 1.2 per cent at Rs 31.1 crore in the quarter under review as against Rs 50.8 crore in the same quarter of financial year 2020-21.
Sale volume to OE customers declined by 4 per cent mainly due to significant drop in sales to the farm tractor segment on account of unseasonal rains and higher dealer inventory, the company said, however OE sales revenue registered a growth of around 5 per cent on account of inflationary impact in the selling price realisation.
Besides, sales to international customers also decreased by 10 per cent as the demand was affected due to semiconductor shortage, the company said.
On a consolidated basis, the company posted a loss of Rs 4.3 crore in the third quarter against a profit of Rs 5.5 crore in Q3FY21, it said.
“Q3 was a challenging quarter with semiconductor shortages impacting the supply chain across served customers and geographies. Also commodity prices remained at elevated levels impacting profitability. The US subsidiary sustained the improved operational performance. We hope the third wave of coronavirus in India does not adversely impact the demand environment,” said L Ganesh, Chairman, Rane Group. PTI IAS MKJ
