Rane (Madras) Ltd
NSE:RML
Rane (Madras) Ltd
Rane (Madras) Ltd. engages in the manufacture and supply of auto components for the transportation industry. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,183 full-time employees. The company went IPO on 2005-08-30. The firm operates in a single segment viz components for the transportation industry. The company is engaged in the activities related to the manufacture and supply of auto components for transport industries. The firm operates through two divisions: steering and linkages division (SLD) and light metal casting (LMC). SLD manufactures mechanical steering gears, hydrostatic steering systems, and steering and suspension linkage products. LMC manufactures aluminum die casting such as steering housing and engine case covers. The company offers various products such as suspension linkage products, steering gear products, Hydraulic products, Light metal casting products, and other automotive parts. The Company’s subsidiaries include Rane light metal casting Inc., America (LMCA).
Rane (Madras) Ltd. engages in the manufacture and supply of auto components for the transportation industry. The company is headquartered in Chennai, Tamil Nadu and currently employs 1,183 full-time employees. The company went IPO on 2005-08-30. The firm operates in a single segment viz components for the transportation industry. The company is engaged in the activities related to the manufacture and supply of auto components for transport industries. The firm operates through two divisions: steering and linkages division (SLD) and light metal casting (LMC). SLD manufactures mechanical steering gears, hydrostatic steering systems, and steering and suspension linkage products. LMC manufactures aluminum die casting such as steering housing and engine case covers. The company offers various products such as suspension linkage products, steering gear products, Hydraulic products, Light metal casting products, and other automotive parts. The Company’s subsidiaries include Rane light metal casting Inc., America (LMCA).
Revenue Growth: Rane Madras reported Q2 revenue of INR 923.4 crores, up 8.4% from INR 851.8 crores last year.
Margin Improvement: EBITDA margin increased by 18 bps to 9% from 8.8% in the previous quarter; management reiterated a double-digit margin target over the next few years.
Order Wins: The group secured new business worth over INR 500 crores per annum during the quarter.
Debt Reduction: A debt reduction of INR 200–300 crores is targeted over the next 18 months, with proceeds from land sales earmarked for repayment.
Segment Trends: Aftermarket sales grew strongly, and export steering sales improved due to stabilization in the US market and new programs.
Margin Headwinds: Raw material costs in the brake components division pressured margins, but other divisions saw operational improvement.
ZF Rane Performance: ZF Rane's occupant safety business grew double digits in H1, and the steering wheel business also reported notable growth.
Guidance Maintained: Management remains optimistic for H2, expecting continued improvement in margins and demand, but stressed that progress depends on sustained vehicle segment growth.
