Ceat posts three-fold jump in standalone net profit in March quarter

Tyre maker Ceat Ltd reported a nearly three-fold increase in standalone net profit to Rs 141.84 crore in the March quarter of the previous financial year

Tyre maker Ceat Ltd on Wednesday reported a nearly three-fold increase in standalone net profit to Rs 141.84 crore in the March quarter of the previous fiscal.

The company had posted a standalone net profit of Rs 50.12 crore in Q4 FY20.

Revenue from operations rose by 46 per cent to Rs 2,279.03 crore during the quarter compared to Rs 1,564.53 crore in the March quarter of FY 2019-20, Ceat said in a statement.

The company said its board has approved an investment of Rs 1,205 crore to expand the capabilities in the truck and bus radial segment.

For the fiscal 2020-21, the company's standalone net profit stood at Rs 413.64 crore as compared to a profit of Rs 224. 61 crore.

Revenue from operations stood at Rs 7,572.79 crore during the previous year as against Rs 6,747.86 crore in FY20.

"It has been a very satisfactory year with record sales and profitability especially in a year that has been marked by uncertainty due to Covid-19. We gained market share in passenger car (PCR) and truck and bus (TBR) radial segments, said Anant Goenka, Managing Director, CEAT Limited.

Encouraged by buoyancy in demand, the company added new capacity in the TBR segment. Towards the latter part of the year due to increase in commodity prices, there has been some erosion in gross margins which prompted it to take a small increase in price, he said.

Frequent lockdowns and high commodity prices remain an industry-wide concern on OEM and retail demand. The vaccination drive gives us reason to remain bullish on the industry from a medium to longer term perspective, Goenka added.

The board has also approved a dividend payment of 180 per cent, the company said.