250 per cent Final Dividend: This Smallcap auto ancillary company announces stellar dividend for shareholders; do you own it?

For Q4FY23, the company reported total revenue at Rs 165.80 crore, a modest jump of 5.7 per cent from Rs 157 crore of Q4FY22.

In its recent Quarterly Results, Rane Brake Linings has announced a stellar dividend of 2500 per cent on the face value of Rs 10 per share to its shareholders. The company is known for its good dividend history and has the dividend yield of 2.84 per cent. Interestingly, a dividend of Rs 25 per equity share has been recommended by the board of directors on the paid-up capital of 77,29,871 of Rs 10 each for the financial year 2022-23.   

For Q4FY23, the company reported total revenue at Rs 165.80 crore, a modest jump of 5.7 per cent from Rs 157 crore of Q4FY22. Profit After Tax (PAT) stood at Rs 12 crore compared to Rs 13.10 crore from the same quarter of previous financial year.   

Sales to OE customer grew 3 per cent. Though the demand remained strong, there was a slightly slower growth due to inventory correction at the customer base. Also, Sales to Aftermarket customers grew 14 per cent. Drop in EBITDA margin by 128 basis points due to unfavourable forex and increase in other expenses towards specific initiatives taken up during the quarter towards Energy and Yield improvement projects.  

In his comment, Mr. L. Ganesh, Chairman of Rane Group said, "Demand environment remained favourable and helped RBL post highest quarterly sales in Q4 FY23. The management is working on various cost reduction initiatives to mitigate high material costs. Though we see slowdown in major global economies, the growth momentum across vehicle segments in India continues to remain strong. We navigate this macro environment scenario cautiously prioritizing operational improvement and cost reduction measures."   

Rane Brake Linings, a Rs 550 crore Smallcap company, works in the manufacturing of asbestos-free Brake Linings, Disc pads and clutch facings, and supplies brake parts to its large clientele. RBL share price closed 1.72 per cent lower at Rs 703.30 a piece on NSE on Wednesday, May 03.