May 18 2016, 15.53 PM IST || Pocket News Alert
• Sales & Operating income at Rs. 349.60 Crores against Rs. 395.18 Crates for previous year • [LEDA of Rs. 6.61 Crores against Rs. 33.72 Crores for previous year • Net Loss of Rs. 12.54 Crores against Net Profit of Rs. 23.48 Crores for previous year
Channel, 19" May 2016: Rane Engine Valve Limited (REVL) a leading manufacturer of Engine Valves, Guides & Tappets today announced its results for the year ended 310 March 2016.
The Company registered Sales 8, Operating Income of Rs. 349.60 Crores for the year ended 310 March 2016 as against Rs. 395.18 Crores for the previous year. The decline in sales is mainly attributed to lower of flake in served models in passenger cars in India and end of major program of a European customer. Though the Two Wheeler segment saw modest growth, REVL's limited presence in the Scooter segment is attributed to sales decline compared to previous year. Our large valve business was affected by slowdown in Oil 8. Gas sector and lower &flake from locomotive customers. Further, we saw structural decline in the aftermarket demand for Engine parts. Export sales constituted 28% of the total sales for the year.
The company reported Net Loss of Rs. 12.54 Crores against Net Profit of Rs. 23.48 Crores for the previous year. This was driven by higher employee cost and lower capacity utilisation. During the year, REVL took various measures with focus on long term improvements in productivity and reduction of raw material /in-house qualify costs. The company as part of the rationalization of facilities, consolidated the Peenya Plant (Bengaluru) with Hirehalli Plant (Tumakuru) to become more cost efficient.
"During this challenging time at REVL, our efforts are focused on stringent cost control initiatives and making strategic investments to revive sales growth. We have invested on developing high performance materials and special surface coating to provide superior products meeting newer emission norms and engines requirements. These present us with opportunities in India and globally to drive sales growth in the coming years" said L. Ganesh, Chairman, Rane Group