CEAT Q1 Result: Tyremaker Reports Profit Of 23 Crore
Published On 22-Jul-2021
Company had reported a net loss of Rs 35 crore for the corresponding period of the previous fiscal.
Homegrown tyre major CEAT has reported a consolidated net profit of Rs 23 crore for the first quarter ended June 30, 2021.
The company had reported a net loss of Rs 35 crore for the corresponding period of the previous fiscal because of COVID-led disruptions in the market.
Revenue from operations rose to Rs 1,906 crore in the first quarter as compared with Rs 1,120 crore in the same period of the previous fiscal year, Ceat Tyres said in a statement.
“It has been a challenging quarter with the second wave of COVID-19 restricting demand and rising input costs affecting margins. However, with progressive drop in COVID cases in the last four weeks and a steady increase of vaccination in the latter part of the quarter, we are witnessing a gradual pickup in demand from early June in the replacement market and OEMs," said Anant Goenka, MD, CEAT.
"Besides the uncertainties of a third wave of COVID infection in the country, we expect to see improving consumer confidence and growth going forward. We will continue to calibrate the market dynamics and align our business plans to the evolving scenario," he added.
On a standalone basis, the company's revenue stood at Rs 1,898 crore and net profit at Rs 20 crore in the first quarter.
"Our overall margins have been impacted compared to the previous quarter owing to a steep rise in raw material prices and lower revenues during the quarter due to the second wave of COVID-19. While raw material prices have currently remained range-bound, we would still need to take some more price increases to offset the impact," Ceat CFO Kumar Subbiah noted.
CEAT, the flagship company of RPG Enterprises, was established in 1958. Today, it is one of India’s leading tyre manufacturers and has a strong presence in global markets.
CEAT produces over 35 million tyres a year and offers the widest range of tyres to all segments and manufactures world-class radials for; heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws.
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