Tyremaker CEAT Ltd reported a consolidated profit of ₹35 crore for the quarter ended December as opposed to a net loss of ₹20 crore reported during the same quarter last year.
“Our margins continue to improve as a result of the cooling commodity prices. Growth is led by domestic demand as we remain cautious about international markets that are getting impacted by recessionary trends. Going forward, our outlook for Q4 is positive. We have the capacities available to cater to growing market demand,” said Anant Goenka, Managing Director, CEAT Limited.
Total income grew 12.9 per cent to ₹2,729 crore in the quarter ended December compared to ₹2,416 crore clocked during the same quarter last year. Income dipped 6 per cent compared to ₹2,904 crore for the quarter ended September.
“We brought down our overall inventories by ₹280 crore, which helped in bringing efficiencies in operating cashflows and minimising our borrowings. We intend to maintain our capex for the year at around ₹900 crore in line with our annual plan. With the correction in commodity costs, the margin outlook is positive for the next quarter,” said Kumar Subbiah, CFO of CEAT Limited.