Q4 2024 Rane Holdings Ltd, Rane Brake Linings Ltd, Rane (Madras) Ltd, Rane Engine Valve Ltd Earnings Call Transcript
Key Points
- Rane (Madras) Ltd (BOM:532661) achieved its highest ever group aggregate sales for any financial year, with an 8% growth over the previous year, totaling INR7,200 crore.
- Revenue from domestic OE customers grew by 9%, and revenue from international customers increased by 4%, with organic exports growing by 15%.
- The company won new business worth more than INR500 crore across products and customers during the year.
- Rane Brake Lining achieved the highest sales for the quarter and fiscal year, with FY24 sales growing by 10%, supported by strong sales to the 2-wheeler segment and a 33% increase in export sales.
- The joint venture with ZF saw a 12% growth in the steering business and a 20% growth in the occupant safety business, with EBITDA margin improving by 33 basis points.
- The EBITDA margin of Rane (Madras) Ltd (BOM:532661) consolidated decreased by 38 basis points in FY24.
- The demand for the steering and linkage business was impacted due to a drop in passenger cars, particularly entry-level models, and the farm tractor segment.
- The EBITDA margin declined due to lower absorption of fixed costs and certain one-off provisions.
- Rane NSK joint venture's EBITDA margin was impacted due to an unfavorable mix, with some new businesses having much lower profitability compared to earlier programs.
- The company faced challenges with warranty claims, impacting financial performance, particularly in Rane Engine Valves and Rane Madras.
Ladies and gentlemen, good day, and welcome to Rane Group Q4 FY24 earnings conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Binay Sarda from Ernst & Young. Thank you, and over to you, sir.
Thank you, Muskan. Welcome to the investor call of the Rane Group to discuss (technical difficulty) and answer your questions today. We have the management team from Rane Group, represented by Mr. Harish Lakshman, [Vice Chairman & Joint MD] of Rane Group; Mr. P.A. Padmanabhan, President, Finance and Group CFO; Mr. Siva Chandrasekaran, Senior Executive Vice President of Secretarial and Legal Services; and Mr. M.A.P. Sridhar Kumar, Executive Vice President, Finance and CFO of Rane Holdings Limited.
Please note that we have sent to the press release, and also, we have sent to the presentation link of the deck. In case if you have not received the presentation, you could look at it on our website or on the BSE site of Rane or you could write to us
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