The Hindu Business Line : Ceat Q1 net zooms to Rs 30 cr

Mumbai, July 27 Tyre maker Ceat Ltdhas posted net profit of Rs 30.35 crore for the first quarter FY 2007-08 up 130 timescompared with Rs 0.23 crore for the same period last year. The company’s turnover for the quarter stood at Rs 601 crore (Rs 557 crore), up by 8 per cent. EBITDA margin surged by 490 basis points during the quarter to 9.9 per cent compared with 5 per cent for the same period in the previous year.

Mr Paras K Chowdhary, Managing Director of CEAT, said: “The increase in operating margins is mainly attributed to better product mix, strategic buying of raw materials and sustained efforts towards cost optimisation and lower interest burden despite increase in interest rates and growth in business.”

The company is now charting out an accelerated growth plan, with key thrust in exports. With a global footprint spread over 100 countries, Ceat expects to further enhance its presence in Europe. It expects to enhancetruck radials strategy through a future investment in a green field radial tyre facility. Despite rupee appreciation, the company hopes to perform better in exports in the next few quarters to insulate against the temporary slowdown being witnessed in the OE business.

Ceat is also aggressively revitalising its existing product portfolio and expects to garner market share by delivering superior value to customers through new products which are geared to address current and emerging market needs especially in profitable niche markets.

The company’s shares that are listed on BSE closed on Friday at Rs 181.55, a dip by 1.52 per cent over its previous close.