Rane Brake Lining Q1 net dips 30% on GST
Rane Brake Lining Ltd., (RBL) standalone net profit fell 30% in the first quarter ended June 30, 2017, to ₹7.33 crore on lower offtake in aftermarket segment owing to Goods and Services Tax (GST) implementation. The leading manufacturer of brake linings, clutch facings and disc had reported a net profit of ₹10.50 crore in the year-earlier period. Total revenue of the company fell 14% to ₹114 crore from ₹133 crore in the year-earlier period. During the quarter, the company experienced strong growth in sales to Indian original equipment customers particularly passenger vehicles. Sales to after-market segment were affected as dealers lowered stocks owing to GST implementation. “This outweighed the growth in other segments resulting in 14% decline in total sales,” said L. Ganesh, chairman, RBL. “Favourable material cost and stringent cost control helped the company mitigate lower volume and maintain operational profitability. We expect demand revival in the upcoming quarters and support us to deliver better operational performance,” he said. On Wednesday, shares of the company lost 3.95% at ₹1,248.90 per share on the BSE.
