Rane Engine Valve freezes in 20% upper circuit on strong Q4 performance

Shares of Rane Engine Valve (REVL) were locked in the 20 per cent upper circuit at Rs 262.65 on the BSE after the auto components & equipments company posted robust operational performance in the January-March quarter (Q4FY23). Earnings before interest, taxes, depreciation, and amortization (Ebitda) margin during the quarter improved around 300 bps to 12.2 per cent due to better capacity realization through productivity improvements and operational leverage. The company, a leading manufacturer of engine valves, guides and tappets, posted a net profit of Rs 4.9 crore for Q4FY23 compared to a loss of Rs 0.01 crore in Q4FY22. Total revenue increased 24.7 per cent to Rs 136.5 crore from Rs 109.50 crore in the year ago quarter. REVL said sales to India original equipment (OE) customers grew by 28 per cent supported by strong off-take from passenger vehicle and commercial vehicle customers. Export sales grew by 27 per cent. Demand from International customers remained strong. The management said the favourable demand environment in India and strong demand from exports supported the topline growth. The company executed several operational improvements and cost saving initiatives which resulted in its financial turnaround. The company continues to prioritise operational improvement projects including capacity optimisation for sustaining and improving the performance, the management said. REVL is part of the Rane Group of Companies, a leading auto component group based out of Chennai. REVL manufactures engine valves, valve guides and tappets for various IC engine applications. REVL is the market leader in Indian OEM and replacement markets. REVL caters to all segments of automobile industries such as PV, CV, tractors, 2W, 3W, stationary engines, railways and marine engines.