Ceat Ltd Q1 turns round to net profit of Rs23.98cr on higher sales and working capital efficiencies

Ceat Ltd reported 70.19% rise in total revenues for the Jun-21 quarter on consolidated basis at Rs1,906.39cr

Jul 22, 2021 10:07 IST India Infoline News Service

Ceat Tyres
Ceat Ltd reported 70.19% rise in total revenues for the Jun-21 quarter on consolidated basis at Rs1,906.39cr  as demand from OEM and replacement markets picked up in the Jujn-21 quarter compared to the year ago period.

On a sequential basis, the revenues were down -16.74% compared to Rs2,289.72cr revenues reported in the Mar-21 quarter. The company is in the automotive tyres, tubes and flaps business and its demand entirely comes from the auto and vehicles industry. OEM and replacement demand struggled QOQ due to COVID 2.0.

The net profit for the Jun-21 quarter turned around to a small profit of Rs23.98cr compared to a net loss of Rs-34.76cr in the Jun-20 quarter. The turnaround was largely on account of higher sales absorbing fixed costs better. In addition, the inventory efficiency also resulted in working capital gains through lower capital lock-in.

Net margins at 1.26% in Jun-21 quarter were lower than 6.67% in the sequential Mar-21 quarter as COVID 2.0 took its toll. However, the tyre business has been hit by high raw material costs, hitting margins deeply.


Financial highlights for Jun-21 compared yoy and sequentially


Ceat Ltd
Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 1,906.39 ₹ 1,120.16 70.19% ₹ 2,289.72 -16.74%
Net Profit (Rs cr) ₹ 23.98 ₹ -34.76 -168.99% ₹ 152.80 -84.31%
Diluted EPS (Rs) ₹ 5.93 ₹ -8.59 ₹ 37.77
Net Margins 1.26% -3.10% 6.67%

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