Rane Brake Lining

Rane Brake Lining Limited (RBL) is part of the Rane Group of companies, a leading auto component group based out of Chennai and it is a market leader in India. RBL is also a supplier of composite brake blocks to Indian Railways, with presence in passenger, EMU, freight, locomotive and Metro rail.

The company had posted a fantastic set of numbers for Q1FY17 with net profit jumping up by a sharp 110% (YoY) at Rs.11 crore on a total income of Rs.121 crore, up 17%. Its India OEM sales grew 16% but the big jump came from aftermarket sales, which showed a good 29% increase. Robust pickup in north and south India boosted numbers too.

The company’s work on rationalizing its costs has surely worked as total costs as a percentage of total sales has come down from 94% to 89%. This is seen amply in the EBITDA, which rose 64% to Rs.18 crore and margins jumped up from 10.61% to 14.82%. It has been working on bringing down its debt too through repayments and this can be seen in the interest outgo which YoY is down 63% at Rs.38 crore.

Its equity is small at Rs.7.91 crore and reserve stands at Rs.130 crore.