Rane (Madras) Limited (RML), a leading manufacturer of steering and suspension systems, reported a consolidated net loss of ₹0.2 crore for the third quarter ended December 31, 2024, reversing from a profit of ₹9.1 crore in the same period last year.
Consolidated revenue remained largely stable at ₹523.7 crore, reflecting a slight 0.2% increase from ₹522.4 crore in Q3FY24. However, operational performance faced notable pressure, with EBITDA falling 19% to ₹39.2 crore from ₹48.4 crore in the year-ago quarter. The EBITDA margin contracted by 178 basis points to 7.5%.
The decline in profitability was largely driven by one-time provisions, including charges for obsolete inventory, premium freight costs, and forex reinstatement losses on overseas investments. Additionally, the company faced a high base effect from the previous year, which had benefited from a one-time provision reversal in employee costs.
A breakdown of the business mix shows that Rane Madras maintains a well-diversified revenue stream. The Indian OEM and OES segment contributes 55% of total sales, while international operations account for 30%, and the domestic aftermarket makes up the remaining 15%. By vehicle category, passenger vehicles lead with a 71% share, followed by commercial vehicles at 20% and farm tractors at 9%.
Despite near-term profitability challenges, Rane Madras’ diversified portfolio across domestic and international markets, along with its strong OEM and aftermarket presence, provides resilience amid market fluctuations. The company, headquartered in Chennai, remains a key supplier to major automotive manufacturers in India and globally.