Rane Holdings Ltd's Q3FY25 Quarter Results
- 07 Feb 2025
Result Summary
- Rane Holdings Ltd reported a 35.4% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a growth of 48.1%.
- Its expenses for the quarter were up by 38.6% QoQ and 54.8% YoY.
- The net profit decreased 97.7% QoQ and decreased 91.2% YoY.
- The earnings per share (EPS) of Rane Holdings Ltd stood at 2.3 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 1245.85 | 920.01 | 841.34 | 35.4% | 48.1% |
Total Expenses | 1234.36 | 890.31 | 797.23 | 38.6% | 54.8% |
Profit Before Tax | 10.55 | 243.20 | 44.11 | -95.7% | -76.1% |
Tax | 14.91 | 62.50 | 10.75 | -76.1% | 38.7% |
Profit After Tax | 4.22 | 185.40 | 48.03 | -97.7% | -91.2% |
Earnings Per Share | 2.30 | 124.40 | 27.30 | -98.2% | -91.6% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Rane Holdings Ltd is a leading player in the automotive components industry in India. The company primarily engages in manufacturing and marketing a range of automotive parts, including steering and suspension systems, friction materials, valve train components, and die-cast products. Rane Holdings has established a significant presence in both domestic and international markets, serving major automobile manufacturers. The company is known for its commitment to quality and innovation, with a focus on enhancing the performance and safety of vehicles. Recent developments in the automotive industry, such as the shift towards electric vehicles and increased demand for safety features, may impact the company's product offerings and market dynamics. However, specific recent developments for Rane Holdings Ltd are not available.
Revenue
In the third quarter of the fiscal year 2025 (Q3FY25), Rane Holdings Ltd reported a total income of ₹1,245.85 crores. This represents a substantial increase compared to both the previous quarter (Q2FY25), where total income was ₹920.01 crores, and the same quarter of the previous year (Q3FY24), which recorded ₹841.34 crores. The quarter-over-quarter (QoQ) growth was 35.4%, while the year-over-year (YoY) growth stood at 48.1%. This significant growth in total income indicates robust revenue generation during this period. As income forms a critical aspect of the company's financial performance, these metrics are essential for understanding the revenue trajectory over different periods within the fiscal year.
Profitability
For the quarter ended Q3FY25, Rane Holdings Ltd recorded a Profit Before Tax (PBT) of ₹10.55 crores, a significant decline from ₹243.20 crores in the previous quarter (Q2FY25) and ₹44.11 crores in Q3FY24. The company witnessed a drastic decrease in PBT with a QoQ decline of 95.7% and a YoY decrease of 76.1%. The tax expense for Q3FY25 was ₹14.91 crores, which, despite being lower than the previous quarter's ₹62.50 crores, was higher than Q3FY24's ₹10.75 crores, reflecting a YoY increase of 38.7%. Consequently, the Profit After Tax (PAT) for Q3FY25 was ₹4.22 crores, showing a significant reduction from the previous quarter's ₹185.40 crores and Q3FY24's ₹48.03 crores, translating to a QoQ decline of 97.7% and a YoY decrease of 91.2%. Earnings Per Share (EPS) followed a similar trend, dropping to ₹2.30 in Q3FY25 from ₹124.40 in Q2FY25 and ₹27.30 in Q3FY24, with a QoQ reduction of 98.2% and a YoY decrease of 91.6%.
Operating Metrics
The financial data for Rane Holdings Ltd indicates a marked increase in total expenses for Q3FY25, totaling ₹1,234.36 crores. This represents a 38.6% increase from the previous quarter (Q2FY25), where expenses were ₹890.31 crores, and a 54.8% increase from the same quarter in the previous year (Q3FY24), which recorded ₹797.23 crores. Despite the increase in total income, the significant rise in expenses has impacted the company's profitability metrics for the quarter. The disparity between income growth and expense growth has resulted in a considerable reduction in profit margins, as evidenced by the sharp decline in both Profit Before Tax and Profit After Tax figures. The operating performance for the quarter reflects the challenges in maintaining cost efficiency amidst rising revenue figures, highlighting the importance of managing operating expenses in sustaining profitability.
