Rane Brake Lining Ltd. reported an 8% drop in standalone net profit for the second quarter ended September 2017 to ₹9.3 crore, compared with a year earlier, due to muted sales to domestic original equipment customers.
Total net revenue fell 11% to ₹112 crore, the manufacturer of brake linings, clutch facings and disc pads said in a statement.
The automotive components maker said it had experienced ‘favourable’ growth in the two-wheeler segment as well as a gradual revival in demand in the aftermarket business. Lower power cost through commissioning of a 2 MW solar plant, employee cost reduction through VRS implementation and improved productivity helped us to sustain, said a company statement.
“ After a challenging first quarter, we saw demand revival in the after market segment. Favourable material cost and strategic cost savings supported to deliver strong operating margin. We remain cautiously optimistic for second half of this fiscal, as we envisage headwinds on after market demand environment and increasing material costs,” said L. Ganesh, chairman, Rane Group.
