Strong demand for the products of Rane Brake Lining Ltd (RBL), a leading manufacturer of Brake Linings, Clutch Facings and Disc Pads, from Indian OEM customeRs , predominantly in the passenger vehicle and commercial vehicle segment, was the highlight of its performance in the third quarter of 2016-17.
The Indian aftermarket business was affected by the demonetisation, while international aftermarkets recorded flat performance. However, disc pad products maintained their growth momentum. There was a demand drop in the rail segment.
“Q3FY17 was an eventful quarter given the macroeconomic issues facing the industry. Despite headwinds, RBL clocked a steady performance on the back of robust demand from Indian OEMs in passenger vehicle segment coupled with our ongoing cost reduction initiatives. As we move forward, we believe our select products are poised well to gain from anticipated recovery of the auto industry,” L Ganesh, Chairman, Rane Group, said.
The total operating income of RBL was Rs 119.50 crore for Q3 FY17 as compared to Rs 111.68 crore in the Q3FY16, an increase of 7%. EBITDA also increased 7% to Rs 17.66 crore as compared to Rs 16.44crore during Q3FY16. The EBITDA margin was at 14.8% for Q3FY17 as against 14.7% in Q3FY16. Net profit (PAT) of the company stood at Rs 9.98Crore for Q3FY17 as compared to Rs 7.91crore in Q3FY16, an increase of 26%.
For the fiRs t 9 months of 2016-17, the total operating income of the company wasRs 354.03 crore as compared to Rs 324.64 crore in the 2015-16 nine month period, an increase of 9%.
EBITDA increased 34% to Rs 52.87crore as compared to Rs 39.46crore during this period. The EBITDA margin was at 14.9% as against 12.2% in the 2015-16 nine months. Net profit rose 82% to Rs 30.30 crore for the nine months in FY17 as compared to Rs 16.62crore in FY16.
