The board of directors of Rane Brake Lining Ltd. (RBL) on Thursday approved a share buy-back proposal.
The company will acquire the shares at a maximum price of ₹825 apiece. The buy-back is estimated to cost ₹22 crore.
The buy-back will be made from all shareholders of the company other than the promoters and promoter group of the company, RBL said.
The company also reported a second quarter net profit of ₹11.5 crore, a 54% growth from the year-earlier period. Total revenue, however, dropped 4% to ₹107.7 crore on an 8% decline in sales to OEM customers.
“With the gradual opening of the economy, we saw a pick up in the demand. OEMs’ production levels also gained momentum, anticipating festive sales,” said L. Ganesh, chairman, Rane Group.
“The cost-reduction measures and lower material prices helped in margin improvement. We remain cautiously optimistic about sustenance of the demand post festive season,” he added.
