RACL Geartech will hold a meeting of the Board of Directors of the Company on 14 November 2024Powered by Capital Market - Live

RACL Geartech will hold a meeting of the Board of Directors of the Company on 14 November 2024Powered by Capital Market - Live

The agency has also affirmed the company's short-term rating at 'CARE A2+'. CARE Ratings stated that the ratings assigned to the bank facilities of RACL Geartech continue to derive strength from experienced promoters along with their long track record of operations, established player in the transmission gears and shafts for automotive applications along with the reputed customer base including some of the luxury/premium global OEMs, and geographically diversified revenue mix. Further, ratings also take comfort from comfortable operational performance with growing scale of operations during FY24 (refers to period from April 01, 2023 to March 31, 2024) and healthy profitability margins due to favourable geographic mix. However, the ratings remain constrained due to moderate financial risk profile owing to the discretionary capex undertaken by the company each year based on the nomination letters received from the global OEMs, raw material price volatility risk along with the presence of foreign exchange fluctuation risk, working capital intensive nature of operations along with cyclical nature of the automotive industry. Factors like sustained improvement in the scale of operations beyond Rs.450 crores while maintaining the profitability margins and continued relationship with its key customers and an improvement in the capital structure leading to overall gearing of below 0.75x could lead to a ratings upgrade. However, a decline in scale of operations below Rs 225 crore with moderation in PBILDT margin below 18% on a sustained basis and higher than envisaged capex thereby with increase in debt leading to total debt to PBILDT beyond the current levels could lead to a ratings downgrade. RACL Geartech is engaged in the business of manufacturing of transmission gears and shafts for automotive and industrial applications. The company has two manufacturing units in Uttar Pradesh at Gajraula and Noida. The scrip fell 1.31% to currently trade at Rs 958.65 on the BSE. Powered by Capital Market - Live

RACL Geartech has received revision in credit ratings from CARE Ratings as under: Long term bank facilities (Rs 161.43 crore) - CARE A-; Stable (reaffirmed) Long term / short term bank facilities (Rs 166.50 crore) - CARE A-; Stable / CARE A2+ (LT rating reaffirmed and ST rating assigned) Short term bank facilities (Rs 9 crore) - CARE A2+ (reaffirmed)Powered by Capital Market - Live

RACL Geartech will hold a meeting of the Board of Directors of the Company on 11 September 2024.Powered by Capital Market - Live

RACL Geartech announced that the 41th Annual General Meeting (AGM) of the company will be held on 11 September 2024.Powered by Capital Market - Live

Net profit of RACL Geartech declined 52.63% to Rs 4.15 crore in the quarter ended June 2024 as against Rs 8.76 crore during the previous quarter ended June 2023. Sales rose 23.09% to Rs 108.86 crore in the quarter ended June 2024 as against Rs 88.44 crore during the previous quarter ended June 2023. ParticularsQuarter EndedJun. 2024Jun. 2023% Var. Sales108.8688.44 23 OPM %18.2324.89 - PBDT13.3418.19 -27 PBT6.3511.65 -45 NP4.158.76 -53 Powered by Capital Market - Live

RACL Geartech will hold a meeting of the Board of Directors of the Company on 12 August 2024.Powered by Capital Market - Live