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Tyre maker Ceat today reported 32.83 per cent increase in consolidated net profit at Rs 64.90 crore for the fourth quarter ended March 31, 2013, on the back of lower input cost.
The company had posted a net profit of Rs 48.86 crore during the corresponding period last year.
“There was a reduction in raw martial prices, including that of rubber which accounts for 40 per cent of our raw material. This (lower prices) was one of the key movers towards higher profitability,” Ceat Managing Director, Anant Goenka said here after announcing the financial results.
The consolidated net income during the period of January-March, 2013 quarter was up by 5.69 per cent to Rs 1,345.70 crore from Rs 1,273.25 crore in the year-ago period, the company said.
It added four new original equipment manufacturers during the fiscal namely Bajaj, Eicher, Volvo and Enfield and plans to roll out 100 odd new products in FY2013-14.
The company is continuously focusing on new products, Goenka said, adding, “Last fiscal, we rolled out some 70 odd new products and looking at lunching 100 odd new products this year.”
“Focused advertising campaigns have been a key catalyst to growth in market share and going forward, we will continue our investments in building a strong brand,” he said.
For the entire financial year, the RPG Enterprises firm saw over six-fold rise in its consolidated net profit at Rs 120.19 crore compared to Rs 18.19 crore last fiscal, while net income rose by 8.59 per cent to Rs 5,052.21 crore in FY13 from Rs 4,652.71 crore in FY12.
“This financial year has been a positive story for us. We have witnessed an EBITDA expansion of 320 BPS (3.2 per cent) for the full year on account of higher realisations due to change in product mix and soft raw material prices,” Goenka said.
He claimed that the company has consolidated its position in the two-wheelers segment by increasing its market share.
“With improved operational efficiency and focus on tight working capital management, we have been able to reduce our debt by Rs 273 crore to Rs 1,038 crore from Rs 1,311 crore in FY’12,” company’s Chief Financial Officer Manish Dugar said.
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