Tyremaker CEAT Ltd reported an 86 per cent drop in consolidated net profit for the quarter ended September 30, 2022 due to an increase in raw material prices.

The company clocked a net profit of ₹6 croreduring the quarter against ₹42 crore in the corresponding quarter last year. It also posted a 25 per cent decrease in profit compared to the quarter ended June when it reported ₹8-crore profit.

“The worst is behind us from a margin perspective as the raw material prices peaked in the first quarter. We are optimistic about the prices coming down in the next four to six months,” Anant Goenka, Managing Director, CEAT Limited, told businessline.

Revenue from operations grew 18 per cent to ₹2,894 crore (₹2,451 crore). It grew 2.6 per cent from ₹2,818 crore clocked in the June quarter.

Demand picking up

“The growth is led by the OEM segment as we are witnessing the commercial and passenger vehicle industry picking up with good demand and easing of chip shortage. During the quarter, we made price adjustments in the two-wheeler segment, which has positively impacted our margins. We expect the second half of this year to be better in terms of revenue and margins because of improving domestic demand and stabilising commodity prices,” said Goenka.

The company said its international business was not as strong as the business in India. “Exports have grown but we are seeing headwinds in our international business with recession impact in Europe and possibly in the US ,” added Goenka.