CEAT gains after strong Q3 result

CEAT rose 1.26% to Rs 318.05 at 12:21 IST on BSE after consolidated net profit surged 198.5% to Rs 66.95 crore on 15.3% increase in total income to Rs 1442.34 crore in Q3 December 2013 over Q3 December 2012.

The result was announced after market hours on Monday, 10 February 2014.

Meanwhile, the BSE Sensex was up 71.60 points, or 0.35%, to 20,405.87

On BSE, so far 73,840 shares were traded in the counter as against an average volume of 2.11 lakh shares in the past one quarter.

The stock hit a high of Rs 326.10 and a low of Rs 316.60 so far during the day. The stock hit a record high of Rs 384.65 on 7 January 2014. The stock hit a 52-week low of Rs 87.15 on 22 March 2013.

The stock had underperformed the market over the past one month till 10 February 2014, falling 11.58% compared with the Sensex's 2.04% fall. The scrip, however, outperformed the market in past one quarter, gaining 32.84% as against Sensex's 1.61% fall.

The small-cap company has an equity capital of Rs 35.96 crore. Face value per share is Rs 10.

CEAT's earnings before interest, taxation, depreciation and amortization (EBITDA) rose to 11.2% in Q3 December 2013 from 8.5% in Q3 December 2012. The consolidated EBITDA margins stood at 11.5% in Q3 December 2013 compared to 8.9% in Q3 December 2012.

Mr. Anant Goenlia, Managing Director, CEAT, said, "Q3 has been positive for us on the back of strong revenue growth across verticals. Going forward, we expect margins to be stable on account of stable raw material prices."

On plans ahead, Mr. Goenka said, "We will continue to focus on improving our product mix and operational efficiencies. With regular investments in research and development, we will continue to bring in newer products to the market."

Mr. Subbarao Arnarthaluru, CFO, CEAT, said, "The credit rating of the company has gone up by three notches to 'A' from 'BBB'. As CEAT continues to consolidate its profitability, we hope to achieve better rating and lower the cost of funds."

CEAT, the flagship company of RPG Enterprises, is one of lndia's leading tyre manufacturers and has strong presence in global markets, and produces over 700 tonnes of tyre per day.

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