CEAT Q1 Results: CEAT Q1 Results: Net profit declines 61% to Rs 9 crore

New Delhi: Jul 20 (PTI) Tyre maker CEAT on Wednesday reported a 61 per cent decline in its consolidated internet revenue at Rs 9 crore for the June quarter as excessive uncooked materials costs impacted enterprise.

The Mumbai-headquartered firm had posted a internet revenue of Rs 23 crore within the corresponding interval of final 12 months.

Income from operations, nonetheless, rose to Rs 2,818 crore within the first quarter as in opposition to Rs 1,906 crore within the year-ago interval, the corporate mentioned in a regulatory submitting.

“We witnessed a powerful topline development throughout the quarter, aided by sturdy momentum in OEM and alternative segments. We continued to ramp up our capacities as demand picked up throughout classes. Nonetheless, the continued spike in commodity costs has impacted gross margins, which was partially offset by value changes during the last quarter,”

MD Anant Goenka mentioned.

Elaborating additional,

CFO Kumar Subbiah famous that the corporate continued to maintain tight management on money flows and prices throughout the quarter.

“Regardless of a capex of Rs 250 crore, we have now maintained our internet debt stage near the earlier quarter. Uncooked materials prices moved up throughout this era, impacting our margins adversely,” he added.

Nonetheless, there was some correction within the commodity costs not too long ago and if the development continues, it’ll bear a constructive impression on the enterprise, Subbiah acknowledged.