Rane (Madras) Ltd. — Interim / Quarterly Report 2022

Oct 20, 2021

Registered Office Tel: 91 44 2811 2472 “Maithri” URL:www.ranegroup.com 132, Cathedral Road, Chennai 600 086, India.

CIN: L65993TN2004PLC052856

_________ Rane (Madras) Limited

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//Online Submission// RML/SE/35/2021-22 October 20, 2021

BSE Limited National Stock Exchange of India Limited Listing Centre NEAPS Scrip Code: 532661 Symbol: RML

Dear Sir / Madam,

Sub: Outcome of Board Meeting held on October 20, 2021 - under Regulation 30 of SEBI LODR

Ref: Our letter no. RML/SE/31/2021-22 dated September 29, 2021

This is to inform that the Board of Directors, inter alia, approved the un-audited financial results (standalone & consolidated) along with Cash Flow statement of the Company for the quarter and half year ended September 30, 2021 as recommended by the audit committee at their respective meeting(s) held today (October 20, 2021) .

The un-audited financial results (standalone & consolidated) of the Company for the quarter and half-year ended September 30, 2021 is enclosed along with the Limited Review Report on both standalone & consolidated results issued by M/s. BSR & Co, LLP Chartered Accountants, Statutory Auditors. (Regulation 33) .

The un-audited financial results (standalone & consolidated) along with cash flow statement will be uploaded on the website of the company at www.ranegroup.com and stock exchanges at www.bseindia.com and www.nseindia.com (Regulation 46). An ‘earnings release’ for the above results is also enclosed (Regulation 30).

The extract of the un-audited financial results (standalone & consolidated) will be published in newspapers, i.e., ‘Business Standard’ and ‘Dinamani’ in the format prescribed (Regulation 47) . The meeting of the Board of Directors commenced at 11:15 hrs (IST) and concluded at 13 : 06 hrs (IST).

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

Thanking you,

Yours faithfully.

For Rane (Madras) Limited

SUBHA SHREE Digitally signed by SUBHA SHREE SRIDHARAN SRIDHARAN Date: 2021.10.20 13:22:27 +05'30'

S Subha Shree

Secretary

Encl: a/a

1. Un-audited financial results (standalone & consolidated) for the quarter and half year ended September 30, 2021.

2. Extract of the un-audited financial results (standalone & consolidated) for Newspaper publication.

3. Limited Review Report (standalone & consolidated) for the quarter and half year ended September 30,2021.

1. Earnings release for the quarter and half year ended September 30, 2021.

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RANE (MADRAS) LIMITED
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Q2 FY22 Earnings Release
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Chennai, India, October 20, 2021 Rane (Madras) Limited (NSE: RML; BSE

BUSINESS HIGHLIGHTS

Code:532661), a leading manufacturer of steering and suspension products and

light metal casting components today announced its standalone and consolidated financial performance for the second quarter (Q2FY22) and six months (H1FY22) ended September 30th, 2021.

Standalone Q2 FY22 Performance

• Total Revenue 413.2 Crore for Q2 FY22 285.7 Crore in the Q2 FY21, an increase of 44.6%

• 31.2 29.3 Crore during Q2 FY21, an

• increase of 6.7%

• EBITDA Margin at 7.6% for Q2 FY22 against 10.2% in Q2 FY21 Net Profit 8.5 Crore for Q2 FY22 compared to 6.4 Crore in Q2 FY21, an increase of 32.5%

Consolidated Q2 FY22 Performance

• Total Revenue 459.5 Crore for Q2 FY22 322.1 Crore in

• the Q2 FY21, an increase of 42.6% 21.6 16.4 Crore during Q2 FY21, an

• increase of 32.0%

	Financial Performance	Financial Performance
Standalone	Q2 FY 22	Q2 FY 21	YOY%
Total Revenue	413.2	285.7	44.6%
EBITDA	31.2	29.3	6.7%
Margin (%)	7.6%	10.2%	-268 bps
PAT	8.5	6.4	32.5%
Consolidated Total Revenue	Q2 FY 22 459.5	Q2 FY 21 322.1	YOY% 42.6%
EBITDA	21.6	16.4	32.0%
Margin (%)	4.7%	5.1%	-38 bps
PAT	2.3	-10.0	122.8%

ore, unless otherwise mentioned)

• EBITDA Margin at 4.7% for Q2 FY22 against 5.1% in Q2 FY21

• Net Profit 2.3 Crore for Q2 FY22 compared to Loss of 10 Crore in Q2 FY21, an increase of 122.8%

• Operating Highlights for Q2 FY22 Standalone Sales to OE customers grew 34%. Experienced strong demand from passenger vehicle and commercial vehicle segment.

• Sales to International customers increased by 78%. This was due to commencement of supplies of steering products to new program in Q3FY21. However the schedules for Light Metal Castings product was affected due to semiconductor shortage.

• Sales to Aftermarket customers grew 44% supported by new product introductions.

• Significant increase in all raw material and other costs has resulted in a drop in EBITDA margin by 268 bps

• Net profit includes forex reinstatement loss of 8.10 Crore on the investments in overseas subsidiary

Operating Highlights for Q2 FY22 Consolidated

• Sales of the US subsidiary grew with strong demand on the served models and ramp-up in volumes on new programs. However, the chip shortage is beginning to impact sales.

• Improved operational performance sustained on quality, productivity and customer delivery.

• There was an exceptional income of USD 1.2 Mn on account of US Federal stimulus benefits.

MANAGEMENT COMMENT

RML experienced strong growth across market segments. Inflationary pressures

on material cost impacted the profitability of India business. The overseas subsidiary experienced favourable demand and ramp up in the new programs. Demand revival continues to be strong however the supply constraints due to semiconductor shortage remains a concern.

BUSINESS SPLIT (Q2 FY22)

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(STANDALONE)
BY MARKET (%)
India
Intl OEM / OEM&OES,
OES, 28 56
India
Aftermarket,
16
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BY VEHICLE SEGMENT (%)
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FT, 18
M & HCV,
10
LCV, 8
SCV, 4
PC, 32
MPV, 2
MUV, 26
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L. Ganesh, Chairman, Rane Group

R A NE ( M A D R A S ) L I M I T E D | W W W . R A N E G R O U P . C O M | Q 2 F Y 2 0 2 2 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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PROFIT AND LOSS ACCOUNT

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Standalone Consolidated
Particulars
Q2 FY22 Q2 FY21 YoY% H1 FY22 H1 FY21 YoY% Q2 FY22 Q2 FY21 YoY% H1 FY22 H1 FY21 YoY%
Income from Operations 412.3 284.3 45% 712.1 377.0 89% 458.4 318.4 44% 798.7 428.4 86%
Other Income 0.9 1.4 -36% 1.6 5.0 -68% 1.0 3.7 -72% 1.7 8.0 -79%
Total Revenue 413.2 285.7 45% 713.7 382.0 87% 459.5 322.1 43% 800.4 436.4 83%
Expenses
-Cost of Material Consumed 285.1 175.6 62% 487.7 224.0 118% 303.6 185.2 64% 523.5 240.1 118%
-Changes in inventories -19.4 3.2 -711% -32.3 16.5 -295% -17.9 5.3 -440% -30.5 15.3 -299%
-Employee Benefit Expense 42.0 32.1 31% 81.6 58.7 39% 65.4 55.3 18% 127.8 101.3 26%
-Finance Cost 4.8 7.2 -32% 8.9 14.7 -39% 5.7 8.0 -29% 9.4 16.3 -43%
-Depreciation & Amortization 15.2 12.7 19% 29.7 24.8 20% 20.0 15.4 30% 39.3 31.3 26%
-Other Expenditure 74.2 45.6 63% 121.9 66.0 85% 86.8 60.1 44% 146.7 91.2 61%
Total Expenses 401.9 276.3 45% 697.5 404.7 72% 463.6 329.2 41% 816.2 495.5 65%
PBT before Exceptional Items 11.2 9.4 20% 16.2 -22.7 171% -4.1 -7.0 42% -15.7 -59.1 73%
Exceptional Item - - - - 9.1 - 37.2 -
PBT 11.2 9.4 20% 16.2 -22.7 171% 5.0 -7.0 172% 21.5 -59.1 136%
Tax Expense 2.8 3.0 -7% 4.0 -7.2 155% 2.8 3.0 -7% 4.0 -7.2 155%
PAT 8.5 6.4 32% 12.2 -15.5 179% 2.3 -10.0 123% 17.5 -51.9 134%
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KEY BALANCE SHEET ITEMS

Pil	Standalone	Consolidated
artcuars	**As at 30.09.2021 **	As at 30.09.2021
Non-current assets	599.3 557.3
-Property, Plant and Equipment	313.1 413.9
-Financial Assets	212.6 48.2
Current assets	509.5 587.2
- Inventories	175.2 201.1
-Trade receivables	270.9 300.9
-Cash and cash equivalents	21.3 31.0
Total Assets	1,108.9 1,144.5
Shareholders Fund	335.3 213.1
Non-current liabilities	136.6 239.7
-Long-term borrowings	113.8 200.0
Current liabilities	637.0 691.7
-Short-term borrowings	306.7 320.5
-Trade payables	277.3 305.2
Total Liabilities	773.6 931.4
Total Equity and Liabilities	1,108.9 1,144.5

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

ABOUT RANE (MADRAS) LIMITED

Established in 1960, Rane (Madras) Limited (RML) is part of the Rane Group of Companies, a leading auto component group based out of Chennai. RML has two divisions namely Steering and Linkages Division (SLD) and Light Metal Casting India Division (LMCI). SLD manufactures mechanical steering gears, hydrostatic steering systems and steering and suspension linkage products. LMCI manufactures low porosity, high-quality light metal casting such as steering housings and engine case covers. Through its overseas subsidiary Rane Light Metal Castings Inc. (RLMCA), RML manufactures high pressure light metal casting components from its facility in Kentucky, USA.

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 components 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 NE ( M A D R A S ) L I M I T E D | W W W . R A N E G R O U P . C O M | Q 2 F Y 2 0 2 2 E A R N I N G S R E L E A S E | P A G E 2 O F 2