Shares of Rane Brake Lining, a prominent manufacturer of brake linings, disc pads, and clutch facings, hit 20% upper circuit limit to reach a 2.5 year high of ₹1,021.40 apiece. Today's rally pushed the stock to gain 124% over the past four years.
This surge followed the release of the company's financial results for the fourth quarter (Q4FY24) and full year (FY24) ended March 31st, 2024, which impressed investors. In Q4 FY24, the company's revenue rose to ₹186.7 crore from ₹165.8 crore, marking a 12.6% year-on-year (YoY) increase.
EBITDA for the quarter stood at ₹28.6 crore, reflecting a notable 36.3% improvement over the ₹21 crore reported in Q4 FY23. Profit after tax surged by 28% YoY to ₹15.4 crore.
The company achieved its highest sales figures for both the quarter and the entire fiscal year. Sales to original equipment (OE) customers experienced a notable 18% growth, propelled by increased demand from the two-wheeler and passenger vehicle segments.
Additionally, export sales surged by 19% during the quarter and boasted a remarkable 33% growth for the entire fiscal year. The company commenced supplies to the US market with new products for the CV segment.
For the full fiscal year FY24, the company's revenue stood at ₹663 crore, up 9.2% YoY from ₹607 crore in FY23. EBITDA for FY24 reached ₹77.5 crore, a 19.9% increase from ₹64.6 crore in FY23.
The company reported a profit after tax of ₹40.3 crore for FY24, representing a 20.4% YoY growth. The company board also recommended a dividend of ₹30 per equity share.
Rane Brake Lining is part of the Rane Group of Companies, a leading auto component group based out of Chennai specialises in manufacturing friction material products such as brake linings, disc pads, clutch facings, clutch buttons, brake shoes, and railway brake blocks.
The company is the market leader in India and a global player in friction materials. It has a technical collaboration with Nisshinbo Brakes Inc., Japan, for know-how in brake linings, disc pads, & clutch facings. RBL products have applications in every segment of the automobile industry, such as PV, CV, and 2W/3W.
Looking forward, the growth is set to continue, fueled by robust growth in the Indian auto sector.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
