Business

Rane Brake Q3 net dips 3% on lower sales volume

Rane Brake Lining Ltd.’s (RBL) standalone net profit for the third quarter ended December 2019, dipped by 3% to ₹10.24 crore following a drop in volumes across segments.

The leading manufacturer of brake linings, disc pads and clutch facings posted a total net revenue of ₹130.6 crore, a decrease of 2.9%.

In a regulatory filing, RBL said sales to original equipment customers declined by 10%. Revenue from two-wheeler segment grew 5%. Sales to aftermarket customers declined by 1%. Earnings before interest, tax, depreciation and amortisation declined by 129 bps. Favourable product mix helped offset higher employee cost.

“Despite the challenging market environment, RBL managed to minimise the sales drop with the support of aftermarket segment. The management continues to work on cost reduction initiatives and operational performance to navigate the near-term uncertain demand environment,” said L. Ganesh, chairman, Rane Group.

The board declared an interim dividend of ₹6 per equity share, which is payable by February 12.

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Printable version | Feb 20, 2020 7:44:10 PM | https://www.thehindu.com/business/rane-brake-q3-net-dips-3-on-lower-sales-volume/article30636777.ece

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