CEAT Q2 Net Profit Drops To Rs 1,695.80 Crore
Published On 23-Jan-2020
For the same period of 2018-19, it had a total income of Rs 1,775.53 crore
One of the major tyre manufacturers, CEAT has posted a 30.81 per cent drop for the second quarter in its consolidated net profit at Rs 43.64 crore. However, during the same period of the previous fiscal, the brand has reported a net profit of Rs 63.08 crore. CEAT Ltd said in a regulatory filing that the company had faced a decline in the total income to Rs 1,695.80 crore for the period of July-September.
However, for the same period of 2018-19, it had a total income of Rs 1,775.53 crore. According to reports, CEAT has witnessed a 15 per cent increase in its consolidated profit for the first quarter at Rs 82 crore. Anant Goenka, Ceat Ltd MD said "It has been a challenging quarter in terms of top-line growth owing to a continued dip in consumer sentiment,"
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Having said that, the brand has seen a growth in its second-quarter gross margins and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), if compared to that of the previous quarter. According to him, an improved product portfolio played a major role in helping the company to achieve it.
The CFO of the company, Kumar Subbiah, stated that the brand's focus on the precise product mix and fixed cost management supported it to churn out enhanced margins during the quarter. "We had one more quarter of cash flow management that helped us minimize the borrowings to fund our project Capex," added Subbiah.