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Ceat tanks 8% as Q1 net profit dips nearly 100%

The stock was still trading over 100% higher against its 52-week low

SI Reporter  |  New Delhi 

Ceat tyres

Shares of tanked 8% on the after the reported a 98.6% decline in its consolidated at Rs 1.38 crore for the due to destocking by trade partners ahead of the GST rollout and higher expenses. 

The company had posted a of Rs 103.26 crore during the corresponding period of the previous fiscal, said in a filing.

The stock dipped to Rs 1,749 in intraday trade, but was still over 100% up against its 52-week low of Rs 835, which it hit on August 23, 2016. 

The company's total expenses during the stood at Rs 1,636.13 crore as against Rs 1,516.23 in the year ago period.

"Q1 was a challenging quarter for us in light of destocking by the channel partners due to the GST and peak RM prices which hit us at the same time," Managing Director Anand Goenka said.

Total income during the period also declined to Rs 1,638.95 crore compared to Rs 1,651.83 crore in the corresponding quarter of last fiscal.

On the outlook, Goenka said: "Notwithstanding the short term impact of GST, we expect it to bring positive impact for the tyre industry in the long run."

First Published: Fri, August 04 2017. 10:08 IST