Rane Holdings Ltd. — Earnings Release 2020

Jun 24, 2020

Registered Office

Registered Office Tel: 91 44 2811 2472 Fax: 91 44 2811 2449 132, Cathedral Road, URL; www.ranegroup.com Chennai 600 086, India. CIN: L35999TN1936PLC002202

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Rane Holdings Limited

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//Online Submission//

RHL / SE/12 / 2020-21 BSE Limited Listing Centre ScripCode:505800	RHL / SE/12 / 2020-21 BSE Limited Listing Centre ScripCode:505800	June 24, 2020
	BSE Limited Listing Centre ScripCode:505800	National Stock Exchange of India Ltd. NEAPS Symbol:RANEHOLDIN

Dear Sir / Madam,

Sub: Outcome of Board Meeting held on June 24, 2020 - under Regulation 30 of SEBI LODR Ref: Our letter no. RHL/ SE/ 03 / 2020 - 21 dated May 07, 2020 & RHL/ SE/ 10 / 2020 - 21 dated June 18, 2020

This is to inform that the Board of Directors have,inter alia, approved the audited financial results (standalone & consolidated) of the Company for the quarter and year ended March 31, 2020, as recommended by the audit committee at their respective meeting(s) held today, ( June 24, 2020) .

The audited financial results (standalone & consolidated) of the Company for the quarter and year ended March 31, 2020 both standalone & consolidated results issued by M/s. Deloitte Haskins & Sells, Chartered Accountants, Statutory Auditors. Further, declaration in respect of unmodified opinion on the audited financial results (standalone & consolidated) for the year ended March 31, 2020 is enclosed (Regulation 33) .

The extract of the consolidated audited financial results is being published in newspapers, i.e., (Regulation 47) .

The standalone and consolidated financial results shall be available on the website of the company at www.ranegroup.com and stock exchanges at www.bseindia.com and www.nseindia.com (Regulation 46) . and a communication to shareholders of the company are also enclosed (Regulation 30).

The meeting of the Board of Directors commenced at 12:30 hrs and concluded at 13:54 hrs (IST).

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Rane Holdings Limited

Continuation Sheet

We request you to take the above on record and note the compliance under above referred regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR).

Thanking you.

Yours faithfully,

For Rane Holdings Limited

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Siva Chandrasekaran

Secretary

Encl: a/a

1. Audited financial results (standalone & consolidated) for the quarter & year ended March 31, 2020.

2. Extract of the audited financial results (consolidated) for Newspaper publication.

3. (standalone & consolidated) for the quarter & year ended March 31, 2020.

4. Declaration under Reg 33(3)(d) of SEBI LODR.

5. Earnings release for the year ended March 31, 2020.

6. Communication to Shareholders FY20

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RANE HOLDINGS LIMITED
FY20 Earnings Release
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Chennai, India, June 24, 2020 – Rane Holdings Limited (NSE: RANEHOLDIN; BSE Code: 505800), the holding Company of Rane group today announced financial performance for financial year (FY20) ended March 31, 2020

• Group Aggregate Performance – FY20

• Total Net Revenue decreased by 17.4% to ₹4,436.8 Crore in FY20 from ₹5,369.4 Crore in FY19

• EBITDA stood at ₹350.9 Crore as compared to ₹584.5 Crore during FY19, a decrease of 40.0%

• EBITDA Margin at 7.9% for FY20 as against 10.9% in FY19

• PBT (before exceptional items) stood at ₹73.7 Crore for FY20 as compared to ₹321.0 Crore in FY19, a decrease of 77.0%

• Consolidated Financials – FY20

• Total Net Revenue decreased by 15.0% to ₹2,184.0 Crore in FY20 from ₹2,570.3 Cr in FY19

BUSINESS HIGHLIGHTS

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GROUP AGGREGATE FINANCIAL PERFORMANCE
Particulars FY 20 FY 19 YOY%
Total Net Revenue 4,436.8 5,369.4 -17.4%
EBITDA 350.9 584.5 -40.0%
Margin (%) 7.9% 10.9% -298 bps
PBT 73.7 321.0 -77.0%
CONSOLIDATED FINANCIAL PERFORMANCE
Particulars FY 20 FY 19 YOY%
Total Net Revenue 2,184.0 2,570.3 -15.0%
EBITDA 170.9 250.9 -31.9%
Margin (%) 7.8% 9.8% -194 bps
PBT 43.2 211.6 -79.6%
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• Before Exceptional Items

(In ₹ Crore, unless otherwise mentioned)

• EBITDA stood at ₹170.9 Crore as compared to ₹250.9 Crore during FY19, a decrease of 31.9%

• EBITDA Margin at 7.8% for FY20 as against 9.8% in FY19

• PBT (before exceptional items) stood at ₹43.2 Crore for FY20 as compared to ₹211.6 Crore in FY19, a decrease of 79.6%

• Corporate Action

• A final dividend of ₹4/- per equity share has been recommended by the Board of Directors on the paid-up capital of 1,42,77,809 of ₹10/- each. The total dividend for the year ending March 31, 2020 is ₹8/- per equity share including an interim dividend of ₹ 4/- per equity share declared on February 6, 2020 and paid on February 26, 2020.

Group’s Key Business Highlights for FY20

• Revenue from Indian OE customers declined by 22% due to lower volumes across vehicle segments

• Revenues from International customers declined by 8%. Drop in steering products and light metal casting products partially offset by growth in occupant safety products

• Revenue from Indian aftermarket segment declined by 5% (comparable basis). This drop was mainly due to lockdown in the last week of March 2020.

GROUP AGGREGATE SALES (FY20)

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BY MARKET (%)
Intl
Aftermarket
and OEM, 22
India
Aftermarket,
10
India OEM &
OES, 68
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• EBITDA margin declined by 298 bps due to lower volumes

• There was an exceptional expense of ₹ 104.6 crores made by Rane NSK towards estimated warranty provision in FY20 as against ₹ 31.3 crores in FY19.

• An impairment of ₹ 37.58 Crores is recognized by RML (Standalone) in FY20 considering the possible adverse economic impact of Covid-19 on the future revenue projections of the overseas subsidiary company.

MANAGEMENT COMMENT

Rane group of companies faced significant drop in the volumes across Indian and International customers in FY20. The operational performance of group companies continued to improve and the management worked on various cost savings initiatives to mitigate inflationary pressure on material and employee costs. The Covid-19 pandemic has significantly affected the business and the group companies have drafted measures to minimize the impact. This includes a management salary reduction of 10% to 35% from junior to senior level employees respectively.

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BY VEHICLE SEGMENT (%)
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2W & 3W,
FT, 6
LCV & SCV, 10 3 SE &
Others, 4
M&HCV,
13
PC, 38
MUV &
MPV, 26
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L. Ganesh, Chairman & Managing Director, Rane Holdings Ltd.

R A N E H O L D I N G S L I M I T E D | W W W . R A N E G R O U P . C O M | F Y 2 0 2 0 E A R N I N G S R E L E A S E | P A G E 1 O F 2

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RANE HOLDINGS LIMITED FY20 Earnings Release
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CONSOLIDATED PROFIT AND LOSS ACCOUNT

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(In ₹ Crore, unless otherwise mentioned. The sum of sub-segment amounts may not equal the total amounts due to rounding off)

ABOUT RANE HOLDINGS LIMITED

Rane Holdings Limited (RHL) is the holding company of Rane Group. RHL owns the trademark in Rane and provides a wide range of services to group Companies. These include employee training, development, investor services, business development and information system support.

ABOUT RANE GROUP

Headquartered in Chennai, India, Rane Group is engaged primarily in manufacturing auto components for well over five decades. Rane Group is a preferred supplier to major OEMs in India and abroad. Through its group companies, it provides Steering and Suspension systems, Friction materials, Valve train components, Occupant safety systems, light metal casting products and Connected mobility Solutions. Its products serve a variety of industry segments including Passenger Vehicles, Commercial Vehicles, Farm Tractors, Two-wheelers, Three-wheelers, Railways and Stationery Engines.

IF YOU HAVE ANY QUESTIONS OR REQUIRE FURTHER INFORMATION,

PLEASE FEEL FREE TO CONTACT: INVESTORSERVICES@RANEGROUP.COM OR DPINGLE@CHRISTENSENIR.COM

Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political, or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

R A N E H O L D I N G S L I M I T E D | W W W . R A N E G R O U P . C O M | F Y 2 0 2 0 E A R N I N G S R E L E A S E | P A G E 2 O F 2