Results     09-Feb-23
Analysis
Rane Brake Lining
Sales to OEM customers grew by 18% YoY
For the quarter ending Dec 2022, standalone Net sales (including other operating income) of Rane Brake Lining has increased 14.03% to Rs 153.33 crore compared to quarter ended Dec 2021.   Operating profit margin has jumped from 8.11% to 10.47%, leading to 47.34% rise in operating profit to Rs 16.06 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 53.00% to 55.90%.   Employee cost decreased from 15.78% to 13.45%.   Other expenses fell from 22.79% to 20.36%.   

Other income fell 51.49% to Rs 1.3 crore.  PBIDT rose 27.84% to Rs 17.36 crore.  Provision for interest remained nil.  

PBDT rose 27.69% to Rs 17.34 crore.  Provision for depreciation down 5.62% to Rs 5.04 crore.  

Profit before tax grew 49.27% to Rs 12.30 crore.  Provision for tax was expense of Rs 3.13 crore, compared to Rs 1.36 crore.  Effective tax rate was 25.45% compared to 16.50%.

Profit after tax rose 33.28% to Rs 9.17 crore.  

Promoters’ stake was 70.93% as of 31 December 2022 ,compared to 68.60% as of 31 December 2021 .  
  

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Rane Brake Lining has increased 23.54% to Rs 433.93 crore.  

Operating profit margin has jumped from 7.08% to 8.37%, leading to 45.94% rise in operating profit to Rs 36.31 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 53.01% to 57.23%.   Employee cost decreased from 16.64% to 13.83%.   Other expenses fell from 23.31% to 20.92%.   

Other income fell 26.83% to Rs 7.31 crore.  PBIDT rose 25.09% to Rs 43.62 crore.  Provision for interest remained nil.  

PBDT rose 25.04% to Rs 43.6 crore.  Provision for depreciation down 7.11% to Rs 14.76 crore.  Profit before tax grew 51.95% to Rs 28.84 crore.  Provision for tax was expense of Rs 7.4 crore, compared to Rs 4.97 crore.  Effective tax rate was 25.66% compared to 26.19%.Profit after tax rose 53.03% to Rs 21.44 crore.  

Promoters’ stake was 70.93% as of 31 December 2022 ,compared to 68.60% as of 31 December 2021 .  


Full year results analysis

Net sales (including other operating income) of Rane Brake Lining has increased 19.27% to Rs 505.55 crore.  Operating profit margin has declined from 14.32% to 8.73%, leading to 27.27% decline in operating profit to Rs 44.13 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 46.71% to 53.44%.   Employee cost decreased from 15.57% to 15.49%.   Other expenses fell from 23.13% to 22.37%.   

Other income up 15.65% to Rs 12.64 crore.  PBIDT fell 20.72% to Rs 56.77 crore.  Provision for interest fell 92% to Rs 0.02 crore.  Loan funds remained nil.  Inventories rose to Rs 100.74 crore as of 31 March 2022 from Rs 65.28 crore as of 31 March 2021.  Sundry debtors were higher at Rs 143.53 crore as of 31 March 2022 compared to Rs 129.79 crore as of 31 March 2021.  Cash and bank balance declined from Rs 49.50 crore as of 31 March 2021 to Rs 12.31 crore as of 31 March 2022.  Investments rose to Rs 10.36 crore as of 31 March 2022 from Rs 0.60 crore as of 31 March 2021 .  

PBDT fell 20.47% to Rs 56.75 crore.  Provision for depreciation down 12.29% to Rs 21.42 crore.  Fixed assets declined from Rs 119.18 crore as of 31 March 2021 to Rs 116.82 crore as of 31 March 2022.  Intangible assets increased from Rs 0.38 crore to Rs 0.43 crore.  

Profit before tax down 24.73% to Rs 35.33 crore.  Provision for tax was expense of Rs 7.6 crore, compared to Rs 15.14 crore.  Effective tax rate was 21.92% compared to 32.25%.

Profit after tax fell 14.87% to Rs 27.07 crore.  

Promoters’ stake was 70.93% as of 31 March 2022 ,compared to 68.33% as of 31 March 2021 .  

Cash flow from operating activities decreased to Rs 11.33 crore for year ended March 2022 from Rs 46.58 crore for year ended March 2021.  Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 18.29 crore, compared to Rs 12.33 crore during the year ended March 2021.  

Other highlights

In Q3 FY23, Sales to OEM customers grew by 18% YoY supported by strong demand from passenger vehicle and 2-W segments. Sales to Aftermarket customers grew 10% YoY.

In Q3 FY23, India OEMs contributed 58% of total sales, India aftermarket 38% and International OEMs and aftermarket 4%.

In Q3 FY23, Passenger vehicles contributed 49% of total sales, Commercial vehicle 33%, Two wheeler 15% and others 3%.


Management Comments :
L. Ganesh, Chairman, Rane Group said, “RBL had a good quarter supported by favourable demand and improved operational performance. Sustained higher material cost remains a challenge. Management is executing various operational improvement initiatives to mitigate the impact. Though the demand environment in India remains strong, we remain cautious given the evolving economic scenario across major global economies.”

Rane Brake Lining : Standalone Results
Quarter endedYear to DateYear ended
Particulars202212202112Var.(%)202212202112Var.(%)202203202103Var.(%)
Net Sales (including other operating income)153.33134.4714.03433.93351.2523.54505.55423.8819.27
OPM (%)10.478.11237 bps8.377.08128 bps8.7314.32-559 bps
OP16.0610.9047.3436.3124.8845.9444.1360.68-27.27
Other Inc.1.302.68-51.497.319.99-26.8312.6410.9315.65
PBIDT17.3613.5827.8443.6234.8725.0956.7771.61-20.72
Interest0.020-0.020-0.020.25-92.00
PBDT17.3413.5827.6943.6034.8725.0456.7571.36-20.47
Depreciation5.045.34-5.6214.7615.89-7.1121.4224.42-12.29
PBT12.308.2449.2728.8418.9851.9535.3346.94-24.73
PBT before EO12.38.2449.2728.8418.9851.9535.3346.94-24.73
EO Income00-00--0.660-
PBT after EO12.38.2449.2728.8418.9851.9534.6746.94-26.14
Taxation3.131.36130.157.44.9748.897.615.14-49.80
PAT9.176.8833.2821.4414.0153.0327.0731.8-14.87
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations9.176.8833.2821.4414.0153.0327.0731.8-14.87
EPS (Rs)*11.868.9033.2827.7418.1253.0335.6941.14-13.24
* EPS is on current equity of Rs 7.73 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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