Rane Group Chairman L. Ganesh says they are prioritising cost savings initiatives to mitigate the impact on the profitability.  

Rane (Madras) Ltd’s (RML) standalone net profit for the December quarter dipped by 66% to ₹11 crore over the year-ago period due to a decline in the farm tractor segment and a drop in off-take of steering products in select export geographies.

Revenue from operations fell by 1% to ₹521 crore, while finance costs almost doubled to ₹15 crore, the leading manufacturer of steering and suspension products said in a statement.

Sales to Indian original equipment customers grew 1%, while growth in the commercial vehicle segment was offset by a drop in farm tractors and passenger car segment. Export sales grew 1%. The strong offtake for light metal casting products was partially offset by the drop in steering products in select geographies. The sales to Indian aftermarket customers declined by 4%, RML said.

“Despite strong order book, RML continues to face demand challenges in the domestic served segments. We are prioritising cost savings initiatives to mitigate the impact on the profitability,” said Rane Group chairman L. Ganesh.