How has been the historical performance of Rane (Madras)?

Answer:The historical performance of Rane (Madras) shows a fluctuating trend in net sales, with the latest figure for March 2025 at 3,405.75 crore, a slight decrease from 3,462.73 crore in March 2024, but a significant increase from 2,354.44 crore in March 2023. The total operating income mirrors this trend, reaching 3,405.75 crore in March 2025. The company has seen a rise in raw material costs, which were 1,940.80 crore in March 2025, down from 2,006.31 crore in March 2024. Operating profit (PBDIT) has improved to 297.75 crore in March 2025 from 278.53 crore in March 2024, indicating a positive operational efficiency. However, profit before tax showed a recovery to 77.90 crore in March 2025, compared to a loss of 32.40 crore in March 2024. The net profit for March 2025 was 37.65 crore, down from 54.76 crore in March 2024, but up from 30.02 crore in March 2023.

In terms of balance sheet performance, total liabilities increased to 2,169.64 crore in March 2025 from 1,980.99 crore in March 2024, while total assets also rose to 2,169.64 crore. The company's total debt decreased to 760.93 crore in March 2025 from 822.46 crore in March 2024. Cash flow from operating activities improved significantly to 315.00 crore in March 2025, compared to 191.00 crore in March 2024, reflecting better cash generation. The closing cash and cash equivalents stood at 22.00 crore in March 2025, down from 29.00 crore in March 2024. Overall, Rane (Madras) has shown resilience in its financial performance, with notable improvements in operational metrics despite some fluctuations in net profit and cash reserves.

Breakdown:
Rane (Madras) has experienced a varied financial trajectory over the years, with net sales peaking at 3,405.75 crore in March 2025, although slightly lower than the previous year. The company’s total operating income aligns with this sales figure, indicating stable revenue generation. Raw material costs have seen a decrease, suggesting improved cost management. Operating profit has shown a positive trend, reflecting enhanced operational efficiency, while profit before tax has rebounded from a loss to a profit in the latest period. Despite a decline in net profit compared to the previous year, it remains higher than in 2023, indicating a recovery phase. On the balance sheet, total liabilities and assets have both risen, with total debt decreasing, which may reflect a strategic reduction in leverage. Cash flow from operations has significantly improved, showcasing the company's ability to generate cash effectively, although closing cash reserves have decreased slightly. Overall, Rane (Madras) demonstrates a mix of growth and challenges, with key metrics indicating a resilient operational performance.