Ceat FY11 net profit down 84% at Rs 26 cr

Tyre major Ceat Ltd today reported an 83.71% decline in consolidated net profit for the year ended March, 31, 2011, to Rs 26.46 crore, hit by high raw material costs, specially that of rubber.

The company had posted a consolidated net profit of Rs 162.47 crore in the same period of the previous fiscal, Ceat Ltd said in a filing to the Bombay Stock Exchange.

Ceat's consolidated total income during the year stood at Rs 3,641.68 crore, as against Rs 2,873.23 crore in the year-ago period, up 26.74 per cent.

The company said its board has declared a dividend of Rs 2 per share.

During the fiscal, the firm said its expenditure on raw materials stood at Rs 2,750.51 crore, as against Rs 1,733.32 crore in the same period of the previous year.

On a standalone basis, the company said it suffered a loss Rs 11.86 crore in the January-March quarter, as against a profit of Rs 15.33 crore in the corresponding three-month period a year ago, Ceat Ltd said.

"Escalating raw material prices, especially natural rubber, have impacted the profitability for the (fourth) quarter," the company said.

Standalone total income during the quarter stood at Rs 1,000.92 crore as against Rs 781.5 crore in the corresponding period of the previous fiscal.

Ceat Ltd's scrip was trading at Rs 100.2 per share on the BSE in afternoon trade, down 6% from the previous close.