Ceat inches up after reporting Q2 numbers

Ceat rose 0.98% to Rs 1,232.50 at 11:11 IST on BSE after consolidated net profit rose 1.6% to Rs 106.92 crore on 5.7% growth in net sales to Rs 1418.64 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 7 November 2016.

Meanwhile, the S&P BSE Sensex was up 13.54 points or 0.05% at 27,472.53.

On BSE, so far 81,000 shares were traded in the counter as against average daily volume of 1.07 lakh shares in the past two weeks. The stock hit a high of Rs 1,248 and a low of Rs 1,220.40 so far during the day. The stock had hit a record high of Rs 1,422 on 6 October 2016. The stock had hit a 52-week low of Rs 731.20 on 24 June 2016. The stock had underperformed the market over the past one month till 7 November 2016, sliding 11.08% compared with 2.15% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, advancing 34.37% as against Sensex's 2.21% fall.

The mid-cap company has equity capital of Rs 40.45 crore. Face value per share is Rs 10.

The company's Managing Director Anant Goenka said that overall sales sales volume grew by over 13% year on year (YoY) in September 2016 quarter. This was led by double-digit growth in both domestic and exports segments aided largely by its focus on the passenger segments. Margins had seen slight decline YoY, predominantly due to price cuts taken during the previous quarters, Goenka said.

Manoj Jaiswal, Chief Financial Officer of Ceat said that the company continues to maintain its leverage ratios at healthy levels. Debt equity ratio continues to remain at 0.3x and debt to EBITDA at 1x. The company's long term credit rating had been upgraded by CARE Ratings to Double A from Double A minus, Jaiswal said.

Ceat is one of India's leading tyre manufacturers. The company sells its tyres under the Ceat brand.

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