L. Ganesh. Cl¡atrman and Ma¡taqtncl Dtrector - Rane Holdtngs, P.A. Padmanabhan, president – finance and group CFO addressed the call.

Highlights of the call:

Rane Group is engaged primarily in manufacturing auto components.

Through its group companies, it manufactures Steering and Suspensionsystems, Friction materials, Valve train components, Occupant safety systems, Die-casting products and connected mobility solutions.

lts products serve a variety of industry segments including Passenger Vehicles, Commercial Vehicles, Farm Tractors, Two-wheelers, Three-wheelers, Railways and Stationery Engines.

Demand softened in Commercial Vehicle segment; In SCV and M&HCV segment model-mix resulted in lower growth than industry

The group is facing forex and raw material pressure from past few quarters. It is in process of price negotiation with customers . It has got price increase with some clients and not got with some. The OEMs are not so forthcoming as they are also facing pressure.

In this quarter the demand and schedule launch is lower. No body knows how long will this last. Everyone is hoping that there will be pre buying in Q2 and Q3 of next year. This is the general view of the industry.

Sales to Passenger Vehicle segment declined due to subdued demand partly driven by increase in fuel prices and higher cost of insurance premiums.

In Farm Tractor segment, it gained market share for manual steering gear and entered into new models with hydraulics products.

Performance in 2-Wheeler segment supported by ramp up in supplies of Valve train components and Disc pad products.

Rane (Madras) is seeing strong traction for hydraulic business.

Rane Engine Valve saw continued improvement in capacity utilization at various plant locations resulting in improvement in supplies to OEM customers.

Rane Engine Valve is working on various initiatives to improve operational performance of the plants.

Rane Brake Lining launched new AF grade Brake Lining focused on HCV segment. It is working on various projects to enhance the testing capabilities towards meeting future requirements across segments.

Rane TRW Steering Systems operation was adversely impacted by the sudden dip in the CV market.

Rane NSK Steering Systems successfully commenced operations at new plant in Gujarat.

FY 2019-20 will be difficult for die casting business and so the company is focusing on cost issues. However it sees good opportunity in FY 20-21.

Hydraulic business continues to do well.

Die casting business might not see much of topline growth in FY 2019-20. Due to high fixed cost, margins may be stable buy higher depreciation will dent profitability.