CEAT Limited, an RPG Group company, posted a consolidated net loss of Rs20cr for the October-December quarter. The company had posted a net profit of Rs132.34cr for the same period a year ago.
During the December 31 ended quarter, the tyre-maker company’s revenue from operations rose to Rs2,413cr from Rs2,221.25cr recorded during the same quarter of the previous fiscal, the company said in a filing on Wednesday.
The company stock was bearish on Thursday and at around 10.00 AM, CEAT Ltd was trading at Rs1,086.20 per piece down by Rs47.25 or 4.17% from its previous closing of Rs1,133.45 per piece on the BSE.
“We are witnessing muted demand in the replacement segment due to tepid consumer sentiment, higher fuel prices and a softer uptick in India’s rural markets. The ongoing semiconductor shortages continue to impact original equipment manufacturer passenger segment sales,” CEAT Managing Director, Anant Goenka said.
“However, the silver lining is that we have gained market share in the passenger segment and seen robust growth in the off-highway tyres and international business. The two-wheeler electric vehicle business is another exciting space where we continue to be strong,” he added.
On a standalone basis, CEAT posted a net loss of Rs15cr on revenues of Rs2,406cr during Q3FY22. Its Ebitda margin stood at 5.5%, a contraction of 340 basis points versus the second quarter of the financial year.
“Our margins continue to be under pressure due to rising commodity prices, which have begun to taper down towards the end of Q3. We are taking necessary actions to cut costs and are looking at appropriate price increases going forward,” Goenka said.
CEAT CFO Kumar Subbiah said. “The weakened market scenario and rising input costs continue to put pressure on our margins, leading to an increase in our debt levels during the quarter. We have brought down our finished goods inventory levels and have already taken the necessary steps to bring down the raw material inventory in the fourth quarter, which will help balance our cash flows and keep a check on our overall debt.”
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