CEAT slides after weak Q1 outcome

CEAT dropped 2.5% to Rs 860.90 at 11:49 IST on BSE after consolidated net profit fell 14.5% to Rs 104.06 crore on 4% increase in net sales to Rs 1460.92 crore in Q1 June 2016 over Q1 June 2015.

The company announced the first quarter results after trading hours yesterday, 28 July 2016.

Meanwhile, the S&P BSE Sensex, was currently off 75.81 points or 0.27% at 28,132.81.

On BSE, so far 68,300 shares were traded in the counter, compared with an average daily volume of 59,550 shares in the past one quarter. The stock hit high of Rs 874 and low of Rs 852.50 so far during the trading session. The stock had hit record high of Rs 1,318.30 on 7 October 2015. The stock had hit 52-week low of Rs 731.20 on 24 June 2016. The stock had outperformed the market over the past one month till 28 July 2016, gaining 8.51%, compared with 6.35% gains in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 24.23% as against the Sensex's 10.18% rise.

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

CEAT in its Q1 results press release stated that the company's profit margin declined on year on year basis in Q1 June 2016 due to higher investment in the brand and some price reduction that the company passed on to customers. CEAT's managing director Anant Goenka said that the company is seeing strong growth in the domestic market with volume growth of over 15% aided by a focus on the passenger segments.

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

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