Ceat has posted a quantum leap in net profit at Rs 76 crore for the second quarter ended September 30, helped by a volume growth in passenger vehicle segments.
The tyre-maker is also planning to invest Rs 650 crore to expand its Halol-based manufacturing facility.
The company had posted a net profit of Rs 2.75 crore during the same quarter a year ago.
“The second quarter has been positive for Ceat with strong volume growth in passenger segments. We expect both growth and margins to be on similar levels. Our Sri Lankan operations too, continue to show robust and profitable growth,” said Managing Director Anant Goenka.
The RPG Group company’s total income from operations rose to Rs 1,281 crore (Rs 1,176 crore), while its India operations reported a revenue growth of 9 per cent growth at Rs 1,263 crore.
Its consolidated operating profit (EBITDA) margins stood at 13.8 per cent, compared with 7.2 per cent in the comparable quarter a year ago.
As part of its expansion, Ceat is investing an additional Rs 650 crore to enhance the existing capacity of the radial tyre unit by 120 tonne per day.
“In order to cater to the growing demand of tyres in the domestic replacement market as well as to cater to new original equipment manufacturers, we are expanding our production in passenger car and utility vehicles radials by 120 tonnes per day,” Goenka added.
Ceat, which makes a range of tyres including radials for heavy-duty trucks and buses, light commercial vehicles, earth movers and forklifts produces more than 700 tonnes of tyre per day.