Rane Engine Valve Ltd, part of Rane Group, has posted a net profit of Rs 2.47 crore for the quarter ended March 31, 2014, as against a net loss of Rs 3.30 crore posted during the same period of previous fiscal year. The company also announced merger of Kar Mobiles Ltd, its subsidiary of manufacturing large valves for internal combusion engines catering to automobile and stationary engines, with it.
The company has posted a total income from operations of Rs 73.03 crore for the quarter ended March 31, 2014, as against Rs 68 crore registered during the corresponding quarter or the previous year, with an increase of 7.4%.
Kar Mobiles, based in Karnataka, is currently into manufacturing large valves for internal combustion engines and caters to the automotive, marine and stationary engines in both the domestic and export markets. The company had a sales of Rs 120 crore for the fiscal year 2013-14 with an employee strength of 389.
The merger will benefit the engine valve business from the synergies in combining the operations of the two companies, said the company.
For Rane Engine Valve, the domestic sales declined by four% while exports grew by 18% during the fiscal year ended March 31, 2014, as against the previous year. The company incurred exceptional expense of Voluntary Retirement Scheme for employees of Rs 40.76 crore during the year, which affected the profit for the year, it said.
Rane Group, which has seven companies manufactring safety and critical components for a broad range of automotive industry segments, is expecting revenues of the group to be around Rs 2,700 crore during the fiscal year 2013-14.
