Rane Brake Lining's Q1 FY18 profit of Rs 7.32 crore, down 30.62% YoY

Rane Brake Lining reports Q1 FY2017-18 net profit of Rs 7.32 crore, down 30.62%

Chennai-based Rane Braking Lining, that manufacturers and markets components for automotive industry reported net profit for Q1 FY 2017-18 of Rs 7.32 crore down by 30.62 percent, compared to Rs 10.55 crore for the same period last year.

The company’s total revenue in Q1 FY18 came at Rs 100.93 crore a decrease of around 14 percent, compared to Rs 117.01 crore, EBITDA stood at Rs 15.97 crore (Q1 FY17: Rs 18.41 crore).

“RBL had challenging quarter with lower offtake in aftermarket segment affecting the sales in Q1 FY18. Favourable market cost and stringent cost control helped the company mitigate lower volume and maintain operational profitability. We expect demand revival in the upcoming quarters and support us to deliver better operational performance,” commented L Ganesh, chairman, Rane Group.

Result Highlights

The component manufacturer witnessed strong sales to OEMs particularly in the passenger vehicle segment, on the other hand aftermarket sales suffered due to low stocking by dealers owing to GST implementation thus outweighing sales in other segments resulting in 14 percent decline in total sales.

The favourable commodity, foreign exchange movement and higher cost realisation helped lower material costs along with stringent cost control initiatives helping lower operational cost and capitalisation of assets resulted in higher depreciation and lower profit before tax (PBT).