The company is engaged in manufacturing of steering & suspension systems for every segment of automobile industry, viz Passenger cars, Multi utility vehicles, Light commercial vehicles, Heavy commercial vehicles and Farm tractors. The company is also branched in Hydraulic products in anticipation of shift in customer requirements. The company holds major market share in India both in manual steering gear systems & suspension systems.

Quarter Performance

The OPM during the first quarter ended June 2015 was steady at 8.9%. Raw material cost (as a % to sales, net of stock) registered 200 bps rise to 60.4%.Other expenses (% of sales net of stock) fell 130 bps to 19.4%. Employee expenses fell 45 bps to 11.3%.

Thus the operating profit rose 14% to Rs 17.98crore. Other income fell 6% at Rs 31 lakh vis a vis Rs 33 lakh in previous corresponding quarter. Thereafter PBIDT rose 14% at Rs 18.29 crore. After 26% risein depreciation cost to Rs 8.89 crore and 12% rise in interest expense to Rs 4.45 crore, PBT before EO fell 2% at Rs 4.95 crore. PBT after EO fell 55% at Rs 2.26 crore after accounting for EO item of Rs 2.69 crore on account of VRS expense (nil in previous corresponding quarter). After 57% dropin tax provision at Rs 61 lakh (100 bps drop in tax rate), net profit stood at Rs 1.65 crore against profit of Rs 3.62 crore in previous corresponding quarter, a drop of 54%.

AnnualPerformance:

For the fiscal ended March 31, 2015, the company's net profit stood at Rs 12.45 crore (vis a vis Rs 16.79 crore), drop of 26% on7% rise in net sales at Rs 778.78 crore.

The promoters' have pledged nil shares of the company as onJune 2015.Promoter shareholding stands at 57.78%, unchanged from March 2015.

Shares of Rane (Madras) are trading around Rs 340 at BSE.