Auto parts firm Rane Brake Lining has reported a jump in its net profit to ₹5.8 crore in the quarter ended June 30, 2022, compared with ₹1.7 crore in the year-ago quarter, supported by a favourable demand in the automotive market. The total net revenue of the company grew 45 per cent to ₹142 crore (₹98 crore).
Sales to OE customers grew 36 per cent in Q1 FY23, supported by strong demand across vehicle segments, while aftermarket volumes grew 93 per cent. The company’s EBITDA was at ₹12.5 crore (₹7.2 crore) , while its EBITDA margin was higher at 8.8 per cent (7.4 per cent), supported by higher volumes and improved operational performance. Commodity price increases limited the profitability improvement.
‘Cautiously optimistic’
“RBL benefited from the favourable demand environment across market segments. Higher volumes and improved operational performance helped drive profitability. The demand environment in India looks encouraging for the upcoming quarter. We remain cautiously optimistic given the evolving economic situation globally,” said L Ganesh, Chairman, Rane Group.