Rane Engine posts Q3 net loss at Rs 5 crore

The firm recorded a net loss at Rs 3.4 crore during the corresponding quarter the previous year.

: Manufacturer of engine valves Rane Engine Valve Ltd on Wednesday said it has recorded a net loss of Rs 5 crore for the quarter October-December 2019.

The city-based firm recorded a net loss at Rs 3.4 crore during the corresponding quarter the previous year.

For the nine-month period ending December 31, 2019, the net loss stood at Rs 12.9 crore against Rs 11.9 crore registered a year ago.

The total net revenue for the quarter slipped to Rs 82.9 crore from Rs 107.5 crore registered during the corresponding quarter the previous year.

The total net revenue for the nine-month period ending December 31, 2019 stood at Rs 281.6 crore against Rs 318.4 crore registered a year ago.

The company, in a statement, said sales to the Indian original equipment customers during the quarter ending December 2019 declined by 19 per cent while sales to overseas customers slipped 20 per cent.

The steep drop in volume resulted in a drop in EBITDA which was partially mitigated by favourable raw material price and operational performance improvement.

"The volme drop in domestic market and lower schedules from international customers posed significant challenge to the turnaround plan," Rane Group chairman, L Ganesh said.

The management continued to work on various operational improvement and cost reduction projects which helped to partially mitigate the impact of steep volume drop, he said.

The company continues to see traction on new business pursuits helping a turnaround plan once demand environment improves, he said.