Rane Engine Valve, part of the diversified conglomerate Rane Group has recorded a net profit of Rs 61.92 crore for the quarter ended September 30, 2016.
The Chennai-based company had posted a net loss of Rs 12.51 crore during the same period of the previous year.
For the half year ended September 30, net profit soared to Rs 59.33 crore as against Rs 2.57 crore in the year-ago period.
Total income for September quarter rose to Rs 90.69 crore from Rs 87.61 crore in the year-ago quarter. Total income from operations grew to Rs 183 crore from Rs 174.42 crore.
Noting that the company experienced strong demand from Indian and international passenger car OEMs, the company said, the increase in other expenses was primarily attributed to the asset write-off based on the technical obsolescence and unusable assets arising out of shutting down of Alandur and Peenya plants.
The company had exceptional income of Rs 93.9 crore on account of profits on sale of remaining portion of Alandur land, it said.
"REVL continued to improve its operational performance. Our debottle-necking efforts to improve plant production helped us capitalise on strong demand in select market segments," Rane Group Chairman, L Ganesh said.
"We were able to reduce the operational loss with our focused efforts on material cost reduction and stringent fixed cost reduction," he said.
These initiatives will continue in the upcoming quarters to improve operational efficiency and deliver profitable growth, he added.
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