Rane Brake Lining Ltd., (RBL), a leading manufacturer of brake linings, disc pads and clutch facings, posted a 40.5% increase in its net profit to ₹7.46 crore for the second quarter ended September 2019, aided by higher sales from the two-wheeler segment.
During the period, total net revenue declined 7.6% to ₹112 crore.
“The volume drop in Q2 was more pronounced than Q1. RBL managed to control major cost elements and post good margin. ln the near term, maximising sales opportunities and controlling cost remain top priorities to navigate the tough market environment,” said L. Ganesh, chairman, Rane Group.
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According to him, sales to original equipment customers declined 14% due to a drop in volumes across segments. Revenue from two-wheeler segment grew 19%. Sales to aftermarket customers rose l%.
The company managed flat growth despite sluggish market and stock corrections at dealers.
Favourable product mix helped offset higher employee cost. There was also an one-off reversal of provision for bad debts during the quarter, he said.
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