Chennai based, Rane Brake Lining clocked a six percent decline in its FY2020 net profit at Rs 34.3 crore compared to Rs 36.5 crore in FY2019. This is mostly on the back of challenging market environment and the resultant lower sales volume to OEMs and aftermarket customers.
The company’s total net revenue stood for FY2020 was Rs 481.4 crore, down 7.6 percent year-on-year compared to Rs 521 crore in FY2019. The FY2020 EBITDA was down over five percent Rs 71 crore YoY.
The company's sales to OE customers declined by 13 percent, while sales to aftermarket customers declined one percent. Volume enhancement in the two-wheeler segment offset this drop marginally, as per the company statement.
Speaking about the FY2020 performance, L Ganesh, chairman, Rane Group, said, “The market environment remained challenging in FY2020. RBL managed to partially offset the volume drop in OE segment by enhancing the market position in the aftermarket segment. Through the cost savings initiatives the company protected the operating margin despite the adverse rise in material and employee cost."
Speaking about the Covid impact on businesses going forward, L Ganesh pointed out that, "Covid-19 is significantly impacting the performance of FY2021 and the company is working on various cost savings initiatives to reduce the impact.”