CHENNAI: Auto component major Rane (Madras) Limited reported a net profit of Rs 30.1 crores for Q1 FY27 compared to Rs 18.5 crores in Q1 FY26, an increase of 62.5%.
During Q1 FY27, the company incurred capex of Rs 76.2 crore. The majority of the investments were directed towards steering and linkages and brake components divisions.
The company's total revenue was Rs 1,050.6 crores for Q1 FY27 against Rs 884.4 crore in Q1 FY26, an increase of 18.8%. Sales to domestic OE customers grew by 13% mainly due to higher offtake in the passenger vehicle and farm tractor segment.
Sales to International customers increased by 24% supported by strong offtake of steering products. Sales to Indian Aftermarket customers increased by 28%, as per a release.
The inflationary pressures due to the West Asian crisis was offset through operational initiatives and better absorption of fixed cost.
Finance costs declined by 9.2% YoY in Q1, as a result of cost competitive borrowings.
The company has entered into a business transfer agreement to acquire the friction business of Hindustan Composites on a slump sale basis for an enterprise value of Rs 370 crore. The transaction remains subject to customary regulatory approvals and closing conditions. It is expected to be completed by the end of the quarter.
During the quarter, the Company secured new business with lifetime value of about Rs 2,040 crore.