Rane Group Lands Rs. 320 Crore in New Orders During Q2

In a testament to its robust performance, the Rane Group has clinched new business orders totaling approximately Rs. 320 crore during the second quarter of the fiscal year, driven by heightened demand in both the passenger vehicle (PV) and commercial vehicle (CV) segments.

Among the notable wins, Rane NSK secured a substantial order worth Rs. 175 crore from a domestic PV customer during the September 2023 quarter. The order is for the supply of electronic power steering destined for an SUV model, a move attributed to the flourishing sales of new SUV models in the market.

Rane Madras, a key player in the group, notched up Rs 100 crore in new orders during the same quarter. This includes a Rs. 50-crore order for RCB (recirculating ball steering) from a domestic LCV manufacturer, a Rs. 24 crore order for Light Metal Casting products earmarked for exports, a Rs. 26 crore order for Rack & Pinion from various customers, and Rs. 10 crore orders for linkages from CV customers, including an application for electric small commercial vehicles.

ZF Rane, specializing in steering gear, secured orders worth Rs. 23 crore from domestic CV customers, with Rs. 3 crore earmarked for electric vehicle applications. Additionally, Rane Engine Valve and Rane Brake Lining clinched orders worth Rs. 9 crore and Rs. 5 crore, respectively.

In the second quarter of this fiscal year, the Rane Group witnessed a remarkable 16 per cent growth in aggregate sales, amounting to Rs. 1,897.5 crore, compared to Rs. 1,639.2 crore in the corresponding period of the previous year, as highlighted in the company’s investor presentation.

L Ganesh, Chairman & Managing Director of Rane Holdings Ltd, commented on the positive performance, stating, “Rane Group companies continued to benefit on account of the favorable demand environment in India and strong pull from export customers. Though we remain positive about the demand environment, given the dynamic macro and geopolitical situation, we are working closely with our customers and focusing on operational improvements.”

The revenue from Indian original equipment (OE) customers surged by 16 per cent, supported by robust growth across vehicle segments, while revenues from international business experienced a 20 per cent rise, driven by increased offtake across steering, valve train, light metal casting, and occupant safety products.

The aftermarket business also demonstrated improvement, with a 5 per cent year-on-year growth in Q2, compared to a 2 per cent year-on-year decline in Q1. The PV segment contributed 65 per cent to the group’s topline, followed by commercial vehicles at 25 per cent. The Rane Group's diversified portfolio and strong performance underscore its resilience in the ever-evolving automotive landscape.

HBL