Rane Engine Valves announces salary cut of 10-35% across levels.
Rane Engine Valves Ltd on Friday said in view of the COVID-19 enforced lockdown disrupting its operations, the company has taken up various cost saving measures including reduction in salaries of up to 35 per cent across various levels, a top official has said.
Rane Engine Valve Ltd, a group firm of Rane Group, is engaged in manufacture of engine valves, guides and tappets and declared its financial results for the quarter ending March 31, 2020 on Friday.
Rane Engine Valve Ltd reported a net loss at Rs 16.3 crore for the quarter under review as against a net loss at Rs 13.6 crore recorded in the same period last fiscal.
Net revenues for the Jan-March 2020 quarter was at Rs 358.1 crore as against Rs 424.9 crore registered same quarter last year.
The city-based company, in a BSE filing, said its sales to OE customers declined by 16 per cent and there was a drop in volume across major segments.
Sales to overseas customers also declined by 13 per cent, it said.
Commenting on the financial performance, Rane Group, Chairman L Ganesh said, “FY20 was a challenging year for Rane Engine Valves Ltd given the volume drop across market segments. The operational improvements helped to partially mitigate the impact of lower volumes.”
He said the COVID-19 pandemic ‘significantly’ affected the business and disrupted the turnaround efforts.
“The company is working on various cost savings initiatives including a management salary reduction of 10 per cent to 35 per cent from junior to senior level employees respectively to reduce the impact”, he said.
The initiatives and a healthy order book position of the company would help turn around once the market recovers, he added.
Rane Group is engaged in manufacturing of auto components for over five decades.
Through its group entities, the company provides steering and suspension systems, friction materials, valve train components among many others.
It serves a host of industry segments including passenger and commercial vehicles, farm tractors, two- wheelers, three-wheelers, railways.