Rane Holdings' Profit Surge Linked to Strategic Moves

Rane Holdings Ltd recorded a substantial profit increase in Q3 2024, citing exceptional items. The profit after tax rose to Rs 185.4 crore, significantly higher than last year's Rs 51.1 crore, driven by strategic divestment and acquisition. Despite a slight revenue dip, EBITDA improved due to cost-saving strategies.

Rane Holdings Ltd reported a significant boost in profit after tax for the July-September 2024 quarter, reaching Rs 185.4 crore, largely driven by exceptional items. This marks a stark increase from the Rs 51.1 crore profit during the same period last year.

The Chennai-based conglomerate attributed the profit jump for the six-month period ending September 30, 2024, to Rs 204.9 crore, up from Rs 63.2 crore a year prior, to strategic business moves. Notably, divesting Rane Light Metal Casting Inc. in the USA and acquiring Rane Steering Systems Pvt Ltd from NSK Ltd played key roles.

Total revenues for the Q3 stood at Rs 920 crore, a minor decrease from Rs 930.5 crore last year. Meanwhile, EBITDA saw a 140 basis point improvement, driven by cost-saving measures. The aftermarket segment saw a 5% revenue rise, offset by a 10% decrease in overseas revenues due to the divestment.

(With inputs from agencies.)