Net profit of tyre maker Ceat slumped by more than half during the quarter ended June 30, following a significant erosion in margins due to a spike in input costs.
The Mumbai-based company reported a consolidated net profit of ₹8.68 crore for the reporting quarter, a drop of 63 percent as against ₹23.05 crore reported in the same quarter last year.
Anant Goenka, Managing Director, Ceat said, “We witnessed a strong top-line growth during the quarter, aided by robust momentum in OEM and replacement segments. We continued to ramp up our capacities as demand picked up across categories. However, the continued spike in commodity prices has impacted gross margins, which was partially offset by price adjustments over the last quarter.”
Consolidated revenue
Ceat’s consolidated revenue from operations grew 48 percent to ₹2818 crore during the reporting quarter as compared to ₹1906 crore posted in the same quarter last year.
The board of the company approved the issuance of ₹500 crore worth non-convertible debentures for which a shareholder approval has been sought at the company’s upcoming annual general meeting.
The company recorded an exchange loss of ₹71 lakh towards dividend and other receivables form its subsidiary/joint venture in Sri Lanka on account of devaluation in Sri Lanka currency.
There is a re-measurement loss on consolidating the Sri Lankan subsidiary Associated Ceat Holdings Company, aggregating to ₹15.94 crore for the quarter ended June 30, 2022. The same has been disclosed under comprehensive income.