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 Q3 revenue of INR 1,019.1 crores, up 21.3% from the prior year, reflecting strong industry recovery and demand.
EBITDA Margin Improvement: Q3 EBITDA margin increased by 106 basis points, reaching 9.3%, driven by ongoing cost reduction efforts.
New Business Wins: The company secured INR 130 crores of new orders in Q3 for Rane Madras, with a total of INR 650 crores of new orders won year-to-date.
Warranty Provision Impact: ZF Rane Automotive made a one-off warranty provision of INR 230 crores (net INR 172 crores post-tax) due to a seatbelt recall issue affecting up to 960,000 vehicles globally.
Debt Management: Despite INR 100 crores in capex, total debt remained stable due to land sale proceeds; further substantial debt reduction is expected over the next 12 to 18 months as additional land sales complete.
Margin Outlook: Management reiterated confidence in achieving double-digit (11–12%) EBITDA margins at Rane Madras within 12–18 months, driven by merger synergies and cost control.
Warranty Risk & Insurance: Management is reviewing the sufficiency of the warranty provision and holds product liability insurance but noted it is too early to determine final impact or recoveries.
No Immediate Non-Auto Expansion: The group remains focused on automotive sector growth and is not actively pursuing aerospace or defense diversification at this time.
