Rane (Madras) Reports Mixed Financial Trends Amid Significant Growth Metrics
Rane (Madras), a smallcap in the Auto Components & Equipment sector, has experienced a recent evaluation adjustment reflecting significant changes in its financial metrics. The company reported strong growth in profit after tax and net sales, alongside challenges such as a decline in PAT and a low debtors turnover ratio.
Rane (Madras), a smallcap player in the Auto Components & Equipment industry, has recently undergone an evaluation adjustment that reflects notable changes in its financial metrics. The company's financial performance for the quarter ending March 2025 has shown significant growth, with a profit after tax (PAT) of Rs 11.06 crore, marking a growth rate of 135.4% compared to the previous four-quarter average. Additionally, the operating profit to interest ratio reached a high of 4.26 times, indicating a strong ability to cover interest expenses.Cash and cash equivalents stood at Rs 34.79 crore, the highest recorded for the half-year period, while the debt-equity ratio was noted at a low of 1.21 times. Net sales also peaked at Rs 901.34 crore, and the profit before tax (PBT) less other income was reported at Rs 24.79 crore.
However, the company has faced challenges, including a decline in PAT over the latest six months, which was reported at Rs 11.48 crore, reflecting a decrease of 53.56%. The debtors turnover ratio was at its lowest at 3.93 times, indicating potential issues in managing receivables.
Overall, Rane (Madras) has shown a mix of positive and challenging trends, leading to a revision in its evaluation score.
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