Thursday, November 8, 2012

Ceat Q2 cons net profit up 70% at Rs 3.8 cr


Tyre maker Ceat  's second quarter consolidated net profit surged 70 percent year-on-year (down 87 percent sequentially) to Rs 3.8 crore.

Its net sales rose just 6 percent from a year ago (down 1 percent quarter-on-quarter) to Rs 1,213 crore in July-Sep.

"Q2 is historically a sluggish quarter for the tyre industry on account of the seasonal impact of monsoons. Conversely, despite the challenging macroeconomic environment, we closed the second quarter of this fiscal year on an optimistic note," said Anant Goenka, MD.

The company's finance costs increased to Rs 50 crore from Rs 48 crore. However, tax expenses declined to Rs 2.5 crore from Rs 3.5 crore.

Ceat's other income last quarter fell 36 percent to Rs 3 crore.

"This quarter has witnessed a change in the sales mix, with higher growth in OE (original equipment) segment. Exports have been a challenge as the global environment remains an enigma," Manish Dugar, CFO said on Monday.

On a standalone basis, Ceat's net profit halved to Rs 2.8 crore, due to exceptional loss of Rs 14 crore due to change in method of recognizing provision for warranty. Its standalone net sales in July-Sep were up 6 percent to Rs 1,164 crore.

Ceat shares closed at Rs 109.85, down 6.5 percent from previous close.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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