Companies

Rane Brake Q2 net jumps 55% on revival in auto demand

Chennai | Updated on October 15, 2020 Published on October 15, 2020

L Ganesh, Chairman, Rane Group   -  Bijoy Ghosh

With the gradual opening of the economy, we saw a pick up in demand

Auto parts firm Rane Brake Lining has reported a 55 per cent jump in its net profit at ₹11.5 crore for the quarter ended September 30, 2020 when compared with ₹7.5 crore in the year-ago quarter, aided by a revival in demand in the auto sector.

Total net revenue of the company grew by 4 per cent at ₹112 crore (₹108 crore).

Its EBITDA grew 49 per cent at ₹23 crore (₹15.2 crore), while EBITDA margin was higher at 21 per cent (13.6 per cent).

“With the gradual opening of the economy, we saw a pick up in demand and OEMs production levels gained momentum anticipating festival sales. The plant operations team effectively handled the production ramp-up despite supply chain and labour availability challenges. Cost reduction measures and lower material prices helped in margin improvement. We remain cautiously optimistic about the sustenance of the demand post-festive season,” said L Ganesh, Chairman, Rane Group.

Share buyback

Meanwhile, the company’s Board has approved buyback of fully paid-up equity shares of ₹10 each, from the open market through the stock exchange mechanism for a maximum price of ₹825 per equity share for a total amount not exceeding ₹22 crore excluding transaction costs and taxes.

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Published on October 15, 2020
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