Rane Brake rises after Q2 PAT jumps 55% YoY

Rane Brake Lining jumped 7.71% to Rs 689.80 after the companys net profit surged 54.7% to Rs 11.5 crore on 3% decline in revenue from operations to Rs 105.34 crore in Q2 September 2020 over Q2 September 2019.

Oct 15, 2020 02:10 IST capital market

The companys profit before tax (PBT) surged 86% year-on-year to Rs 16.7 crore in Q2 September 2020. Total tax expense surged to 5.13 crore in Q2 September 2020 as against Rs 1.5 crore in Q2 September 2019. The result was announced during market hours today, 15 October 2020.

Rane Brakes EBITDA stood at Rs 22.6 crore in Q2 September 2020 compared with Rs 15.2 crore in Q2 September 2019, registering a rise of 48.7%. EBITDA margin improved to 21% in Q2 September 2020 from 13.6% in the same period last year. EBITDA margin improved on favourable material price movement and product mix. There was also an one off selling price increase recovery from customer during the quarter.

?With the gradual opening of the economy, we saw pickup in the demand and OEMs production levels gained momentum anticipating festive sales. The plant operations team effectively handled the production ramp up despite the supply chain and labour availability challenges. The cost reduction measures and lower material prices helped in margin improvement. We remain cautiously optimistic about sustenance of the demand post festive season,? said L. Ganesh, chairman, Rane Group.

Meanwhile, the companys board has approved buyback of the companys fully paid-up equity shares of Rs 10 each, from the open market through stock exchange mechanism, for a maximum price of Rs 825 per equity share upto an aggregate amount not exceeding Rs 22 crore.

Rane Brake Linings is a leading manufacturer of brake linings, disc pads and clutch facings.

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