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Aided by growth in the premium segment, Tyremaker CEAT Ltd reported a fivefold increase in net profit at . ₹181 crore for the quarter that ended in December compared to ₹35 crore reported during the same quarter last year.
However, compared to the September quarter, the company’s profits are down 12.56 per cent.
The Mumbai headquartered company’s revenue from operation grew by 8.65 per cent with ₹2,963 crore in December as opposed to ₹2,727 crore during the same quarter last year. The company witnessed a dip of 2.94 per cent in revenue from the September quarter of ₹3,053 crore.
“Replacement and International business reflected strong growth on a y-o-y basis. While margins for the quarter were healthy, we witnessed a marginal drop primarily on account of an increase in input cost. With stronger growth in premium segments in the domestic market and recovery in international markets, we expect stronger growth in the forthcoming quarters,” said Arnab Banerjee, MD & CEO of CEAT Limited.
The company registered a growth of 20 per cent year-on-year in its exports.
The company witnessed a surge in raw material prices during the quarter
“There was an uptick in the crude oil prices and then an uptick in rubber prices. We expect the prices to increase in quarter 4. We have not taken a price hike during the quarter and will wait and watch,” said Kumar Subbiah, Chief Financial Officer of CEAT Limited.
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