The Rane Group has bagged new business orders worth about Rs 320 crore in Q2 of this fiscal, driven by demand in the passenger vehicle (PV) and commercial vehicle (CV) segments.
During the September 2023 quarter, Rane NSK won an order worth Rs 175 crore from a domestic PV customer to supply electronic power steering for an SUV model. There has been a good order flow from PV makers due to robust sales of new SUV models.
Rane Madras secured Rs 100 crore worth of new orders during the second quarter of this fiscal, including a Rs 50-crore order for RCB (recirculating ball steering) from a domestic LCV manufacturer, Rs 24 crore order for Light Metal Casting products for exports, a Rs 26 crore order for Rack & Pinion from various customers, and Rs 10 crore orders for linkages from CV customers, including an electric small commercial vehicle application.
ZF Rane bagged orders worth Rs 23 crore for steering gear from domestic CV customers, including Rs 3 crore orders for EV applications. Rane Engine Valve and Rane Brake Lining also secured orders worth Rs 9 crore and Rs 5 crore respectively.
During the second quarter of this fiscal, the auto parts house recorded 16 per cent growth in aggregate sales to Rs 1,897.5 crore, compared with Rs 1,639.2 in the year-ago period, according to the company’s investor presentation.
“Rane Group companies continued to benefit on account of the favourable demand environment in India and strong pull from export customers. Though we remain positive about the demand environment, given the dynamic macro and geopolitical situation, we are working closely with our customers and focusing on operational improvements, said L Ganesh, Chairman & Managing Director, Rane Holdings Ltd.
Revenue from Indian OE customers grew 16 per cent, supported by strong growth across vehicle segments, while revenues from international business rose 20 per cent, driven by higher offtake across steering, valve train, light metal casting, and occupant safety products.
The aftermarket business showed improvements and revenue from the segment grew 5 per cent year-on-year in Q2, as against a 2 per cent year-on-year decline in Q1.
The PV segment contributed 65 per cent to the group’s topline, followed by commercial vehicles at 25 per cent.