RANE BRAKE LINING LTD - Q2 FY 21 - RESULTS REVIEW - 15 10 20

 

RANE BRAKE LINING LTD

Q2 FY 21 RESULTS REVIEW

15 10 20

 

Established in 1964, Rane Brake Lining Limited (RBL) is part of the Rane Group of Companies, a leading auto component group based out of Chennai.

RBL manufactures friction material products such as Brake linings, Disc pads, Clutch facings, Clutch buttons, Brake Shoes and Railway brake blocks.

RBL is market leader in India and global player in friction material.

It has technical collaboration with Nisshinbo Brakes Inc., Japan for know-how in brake linings, disc pads & clutch facings.

RBL products have application in every segment of automobile industry such as PV, CV and 2W/3W.

Rane Brake Lining Limited, 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 ₹7.5Crore 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 ₹14.8Crore 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

o Favourable material price movement and product mix helped margin improvement

o 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.

B U S I N E S S H I G H  L I G H T S

Q2 FY21 Earnings Release

 “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