Ceat gains on strong Q3 earnings

Net profit for Dec 2015 quarter were higher by 27% on lower finance costs

Shares of Ceat were up over 5% at Rs 940 on the Bombay Stock Exchange after the company reported 27% growth in consolidated net profit at Rs 113 crore for the quarter ended December 31, 2015 compared with Rs 89 crore in the same quarter last fiscal on the back of lower finance costs.

Finance costs for the quarter under review decreased 39% to Rs 19 crore compared with Rs 31 crore in the quarter ended December 31, 2014.

"Reduction in average borrowings levels coupled with reduction in interest rates led to interest costs reduction this quarter. Our debt/equity currently stands at a healthy 0.4," the company said in a release quoting Manoj Jaiswal, Chief Financial Officer.

The stock opened at Rs 911 and touched a high of Rs 942. At 10:05am, over 141,000 shares were traded on both the stock exchanges.