Rane Holdings Ltd, the holding company of Rane Group has reported Rs 20.7 crore in profit after tax for the quarter ending June 30, 2021, the company said on Saturday.
The company had registered a net loss at Rs 84 crore during corresponding quarter previous year. Total revenue from operations during the quarter under review grew to Rs 531.9 crore from Rs 194.1 crore recorded during the same period last fiscal.
On the group's operational performance, the company in a statement said the sales to domestic original equipment manufacturers was impacted by the second wave of the COVID-19 pandemic and shutdown of OEM's production, while demand from overseas remained ''robust''. Drop in the EBITDA (earnings, before interest, taxes, depreciation and amortization) during the period was due to lower volumes and increase in employee cost, the company said.
Commenting on the financial performance, company chairman L Ganesh said, "Q1 FY22 was an eventful quarter with the country weathering the second wave of coronavirus. The group companies' plants operated during the quarter albeit at lower utilisation levels. Demand environment in India looks encouraging for the upcoming quarter".
"The commodity price increase remains a concern. While the overseas demand is encouraging, there would be some impact due to shortage of semiconductors faced by OEMs. The management continues to prioritise on employee safety and operational improvements", he added.
(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)