A part of the Rane group, an auto components maker of engine valve, guides and tappets, Rane Engine Valve had posted a turnaround in Q1FY16 with a Rs.15 crore turnaround but in Q2FY16, there was a reverse turnaround – the company turned back to a loss. It ended the quarter with a net loss of Rs.12 crore v/s loss of Rs.25 lakh in Q1FY15. Net sales rose 27% (YoY) at Rs.86 crore but costs came in Rs.94 crore, up 42% and this pushed the company into the red.

The rise in the cost was mainly on account of a 50% surge in employee benefit expense and this was on account of Rs.8 crore payment made towards employees under the VRS. During the quarter, the company passenger and multi-utility vehicles segment continued to record a good performance but two-wheelers were slow and far was sluggish. Drop in export order led to lower capacity utlisation. The delay in product launches by some OEMs also did not help. All in all, not a good Q2.