CEAT tumbles ~5% after Q2 PAT declines 77% yoy to Rs42cr on rising input costs

The revenue increased to Rs2,451.8cr from Rs1,978.5cr yoy. EBITDA margin stood at 9.2%.

Oct 26, 2021 09:10 IST India Infoline News Service

CEAT tyres
CEAT Limited, an RPG Group Company, reported sharply lower profit at Rs42cr for the second quarter ending September 30, 2021, against Rs181.9cr in the same quarter last fiscal, a decline of 77% yoy.

The revenue increased to Rs2,451.8cr from Rs1,978.5cr yoy. EBITDA margin stood at 9.2%, an expansion of over 11 bps vs Q1FY22. The company’s board has given approval for fundraising up to Rs500cr via debt.

At around 9.36 am, CEAT Ltd was trading at Rs1,230.40 per piece down by Rs63 or 4.87% from its previous closing of Rs1,293.40 per piece on the BSE. The scrip opened at Rs1,210 and has touched a high and low of Rs1,249 and Rs1,165 respectively.

“The overall market demand continues to be robust, despite some lag in commercial and farm categories. We witnessed strong growth on account of good performance in the replacement market, particularly in the passenger vehicles segments. The rising input cost has impacted our gross margins, it has been partially offset by price adjustments over the last quarter,” Managing Director Anant Goenka, CEAT Limited, said.

Total expenses were higher at Rs2,401.64cr as compared to Rs1,814.89cr in the corresponding period last fiscal. Cost of materials consumed stood at Rs,616.59cr, as against Rs1,051.57cr earlier.

The company board on Monday approved raising of up to Rs500cr through issuance of non-convertible debentures (NCDs) which can be listed/unlisted, secured/unsecured or such debt securities on a private placement basis in one or more tranches.

The board also approved the appointment of Parak K Chowdhary as an additional non-independent director, it added.

Related Story

Open Free Demat Account (Rs699)
Open ZERO Brokerage Demat Account

  • 0

    Delivery Brokerage for Lifetime

  • 20

    Per order for Intraday, F&O, Currency & Commodity