Net profit of Rane Brake Lining rose 54.56% to Rs 11.53 crore in the quarter ended September 2020 as against Rs 7.46 crore during the previous quarter ended September 2019. Sales declined 3.44% to Rs 105.34 crore in the quarter ended September 2020 as against Rs 109.09 crore during the previous quarter ended September 2019.

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The company's profit before tax (PBT) surged 86% year-on-year to Rs 16.7 crore in Q2 September 2020. Total tax expense surged to 5.13 crore in Q2 September 2020 as against Rs 1.5 crore in Q2 September 2019. The result was announced during market hours today, 15 October 2020.

Rane Brake's EBITDA stood at Rs 22.6 crore in Q2 September 2020 compared with Rs 15.2 crore in Q2 September 2019, registering a rise of 48.7%. EBITDA margin improved to 21% in Q2 September 2020 from 13.6% in the same period last year. EBITDA margin improved on favourable material price movement and product mix. There was also an one off selling price increase recovery from customer during the quarter.

“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,” said L. Ganesh, chairman, Rane Group.

Meanwhile, the company's 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 crore.

Rane Brake Linings is a leading manufacturer of brake linings, disc pads and clutch facings.

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The Board of Rane Brake Lining at its meeting held on 15 October 2020 has approved the buyback of up to 2.66 lakh shares equity shares of the company for an aggregate amount of Rs 22 crore at a price of Rs 825 per equity share.

The Maximum Buyback Size represents 9.62% of the aggregate of the Company's paid-up equity share capital and free reserves based on the audited financial statements of the Company as at 31 March 2020.

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Rane Brake Lining will hold a meeting of the Board of Directors of the Company on 15 October 2020.

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