Rane Holdings Q1FY24 Results: Sales Surge 9.3%, EBITDA Grows 39.5%

Rane Holdings Limited (RHL) is the holding company for Rane Group, it holds investments solely in group companies. The successful restructuring within the Group has resulted in the complete elimination of cross-holdings among the companies, as intended. RHL is the owner of the Rane trademark and offers various services to the group companies, such as employee training and development, investor services, business development, and information systems support.

On August 4, 2023, Rane Holdings Ltd reported their stellar Q1FY24 results in which sales of the company surged by 9.3% and stood at Rs 897.7 crore as compared to Q1FY23, while EBITDA of the company grew by 39.5% to Rs 80.9 crore as against to Q1FY23, whereas net profit of the company decreased by 41.3% and stood at Rs 12.1 crore as compared to Q1FY23. Furthermore, the company has been able to grow its sales by 18% (CAGR) over the past 3 years while the net profit of the company grew by 179% (CAGR) over the same period.

The company also reported Group’s operational performance in which Indian OE customer revenue grew 5%, supported by strong performance across vehicle segments. International customer revenue increased by 29%, driven by higher demand for steering, valve train, light metal casting, and occupant safety products. However, Indian aftermarket segment revenue declined by 2%. The EBITDA margin improved by 195 bps due to lower material costs and improved operational performance. Net profit after tax was impacted by an exceptional expense of Rs 19.9 crore for warranty provision and VRS in subsidiary companies.

The company has delivered returns of 46.8% over the past year and returns of 129% over the past 3 years. Additionally, the company has a ROCE of 12.7% and a ROE of 8.79%.

On Friday, shares of the company plunged by 0.44% and traded at Rs 980.70.

Investors should keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.