Rane (Madras) Reports Strong Profit Growth Amid Rising Interest Expenses and Market Resilience

Rane (Madras), a player in the auto components and equipment sector, has recently undergone a financial trend adjustment reflecting its improved performance metrics for the quarter ending March 2025. The company reported a significant increase in profit after tax (PAT) for the quarter, reaching Rs 11.06 crore, which marks a growth of 135.4% compared to the previous four-quarter average. Additionally, the operating profit to interest ratio is at its highest, recorded at 4.26 times, indicating strong operational efficiency.
Net sales also reached a peak of Rs 901.34 crore, while the profit before depreciation, interest, and tax (PBDIT) stood at Rs 78.81 crore. The operating profit to net sales ratio is notably high at 8.74%, and profit before tax less other income hit Rs 24.79 crore, showcasing robust financial health.

However, challenges remain as the PAT over the latest six months has decreased by 53.56%, and interest expenses have risen by 26.82%, which could impact future profitability.

In terms of market performance, Rane (Madras) has outperformed the Sensex over various periods, particularly in the three and five-year returns, highlighting its resilience in the competitive landscape.