RBL expects growth momentum
Strong demand for the products of Rane Brake Lining Ltd (RBL), a leading manufacturer of Brake Linings, Clutch Facings and Disc Pads, from Indian OEM customers, predominantly in the passenger vehicle and commercial vehicle segment, was the highlight of its performance in the third quarter of 2016-17.
The Indian aftermarket business was affected by the demonetisation, while international aftermarkets recorded flat performance. However, disc pad products maintained their growth momentum. There was a demand drop in the rail segment.
“Q3 FY17 was an eventful quarter given the macroeconomic issues facing the industry. Despite headwinds, RBL clocked a steady performance on the back of robust demand from Indian OEMs in passenger vehicle segment coupled with our ongoing cost reduction initiatives. As we move forward, we believe our select products are poised well to gain from anticipated recovery of the auto industry,” L Ganesh, Chairman, Rane Group, said.
The total operating income of RBL was Rs 119.50 crore for Q3 FY17 as compared to Rs 111.68 crore in the Q3FY16, an increase of 7%. EBITDA also increased 7% to Rs 17.66 crore as compared to Rs 16.44 crore during Q3 FY16. The EBITDA margin was at 14.8% for Q3 FY17 as against 14.7% in Q3FY16. Net profit (PAT) of the company stood at Rs 9.98 crore for Q3 FY17 as compared to Rs 7.91 crore in Q3 FY16, an increase of 26%.
For the first 9 months of 2016-17, the total operating income of the company was Rs 354.03 crore as compared to Rs 324.64 crore in the 2015-16, 9 month period, an increase of 9%.
EBITDA increased 34% to Rs 52.87 crore as compared to Rs 39.46 crore during this period. The EBITDA margin was at 14.9% as against 12.2% in the 2015-16, 9 months. net profit rose 82% to Rs 30.30 crore for the 9 months in FY17 as compared to Rs 16.62 crore in FY16.