Rane Brake Lining Limited reports Q2FY21, H1FY21 earnings

Rane Brake Lining Limited (NSE: RBL; BSE Code:532987), a leading manufacturer of Brake Linings, Disc Pads and Clutch Facings today announced financial performance for the second quarter (Q2FY21) and six months (H1FY21) ended September 30th, 2020.

Q2 FY21 Performance

- Total Revenue was ₹107.7 Crore for Q2 FY21 as compared to ₹112.1 Crore in the Q2 FY20, a decrease of 3.9%

- EBITDA stood at ₹22.6 Crore as compared to ₹15.2 Crore during Q2 FY20, an increase of 48.7%

- EBITDA Margin at 21.0% for Q2 FY21 as against 13.6% in Q2 FY20, an increase of 743 basis points (bps)

- Net profit (PAT) stood at ₹11.5 Crore for Q2 FY21 as compared to ₹7.5 Crore in Q2 FY20, an increase of 54.7%

H1 FY21 Performance

- Total Revenue was ₹148.9 Crore for H1 FY21 as compared to ₹231.0 Crore in the H1 FY20, a decrease of 35.5%

- EBITDA stood at ₹19.0 Crore as compared to ₹30.9 Crore during H1 FY20, a decrease of 38.6%

- EBITDA Margin at 12.8% for H1 FY21 as against 13.4% in H1 FY20

- Net profit (PAT) stood at ₹4.6 Crore for H1 FY21 as compared to ₹14.8 Crore in H1 FY20, a decrease of 68.6%

* The H1 FY21 results are not comparable to the corresponding period of the previous year due to the truncated period of operations due to lockdown in the Q1 FY21 impacting overall H1 FY21.

Operating Highlights - Q2 FY21

- Sales to OE customer declined 8%.
- Sales to Aftermarket customers grew 1%. Managed flat growth despite lower demand from STUs / Bus operators.
- EBITDA margin improved 743 bps

* Favourable material price movement and product mix helped margin improvement
* There was also an one off selling price increase recovery from customer during the quarter

Corporate Action

- The Board has approved buyback of the company's 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 Crores excluding transaction costs and applicable taxes.

"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." - L. Ganesh, Chairman, Rane Group.

Shares of RANE BRAKE LINING LTD. was last trading in BSE at Rs.639.65 as compared to the previous close of Rs. 656.05. The total number of shares traded during the day was 2787 in over 447 trades.

The stock hit an intraday high of Rs. 656.05 and intraday low of 633.2. The net turnover during the day was Rs. 1792386.

Source : Equity Bulls

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