Busines

Rane Brake Linings reports loss in Q1 on COVID-19-led lockdown

Rane Brake Lining Ltd., a leading manufacturer of brake linings, disc pads and clutch facings, reported a net loss of about ₹6.9 crore during the first quarter ended June 2020 due to a truncated period of operations against a net profit of ₹7.3 crore registered during the corresponding year-ago period.

During the period under review, large portion of the working days were lost owing to the COVID-19-led lockdown. As such, the results for Q1 FY21 are not comparable to the corresponding period of the previous year, it said in a statement.

“Q1FY21 was not a typical quarter due to COVID-19 related shutdown of operations. The company took several measures to restart production safely and addressed the customer demand. We are experiencing positive momentum in the demand environment. However, we remain cautious on the recovery to pre-COVID-19 levels given the partial lockdown measures continuing in several places. We continue to execute the cost reduction and operational improvement initiatives to reduce the impact of lower volume,” said L. Ganesh, chairman, Rane Group.

In addition to focus on addressing demand of India original equipment and aftermarket customers, the company is expanding the presence in the International aftermarket. The liquidity position of the company is quite robust and do not foresee any major challenges in the near term, he said.

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