Ceat Q3 results: Ceat Q3 results: Co reports loss at Rs 20 cr as soaring commodity prices hurt margins


Mumbai: Tyre maker dipped into the red during the December quarter as high commodity prices coupled with subdued demand for replacement tyres from transporters impacted business.

The company consolidated reported a loss of Rs 20 crore compared to a profit of Rs 132 crore in the corresponding quarter last year.

Consolidated revenue grew by 9 per cent year-on-year to Rs 2,413 crore. However, input material costs grew at a much faster rate of 24 per cent on-year, eating into the company’s profitability. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by more than half to Rs 134 crore.

The stock of Ceat Ltd declined 1.42 per cent on the BSE to close at Rs 1133.45 on Wednesday. Benchmark Sensex declined 1.08 per cent.

“The entire reason for the impact on margin was due to inflation,” Anant Goenka, the managing director of the company told ET. The company will implement price hikes on its range of tyres over the next couple of quarters but the pressure on margin was likely to continue in the ongoing quarter, he said.

Demand for truck tyres from the replacement market was muted during the quarter, Goenka said. But car and two-wheeler replacement demand fared well. The replacement market accounts for two-thirds of Ceat’s revenue. International business did well while demand from automakers was also slightly muted, he said.


Source: The Economic Times
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