CEAT spurts after strong Q3 earnings

CEAT jumped 4.56% to Rs 1260.80 after the tyre maker's consolidated net profit rose 150.31% to Rs 132.14 crore on a 26.08% increase in revenue from operations to Rs 2,221.25 crore in Q3 FY21 over Q3 FY20.

Profit before tax in Q3 December 2020 stood at Rs 201.97 crore, up by 144.40% from Rs 82.64 crore in Q3 December 2019. Current tax expense during the quarter increased by 89.79% year-on-year (YoY) to Rs 35.87 crore.

Commenting on company's performance, Anant Goenka, MD of Ceat, said, "This quarter's growth has been achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments. The Replacement market has been buoyant because of consumer preference in personal mobility and strong rural demand. All our factories are currently operating at high capacity levels and we are confident in maintaining strong growth levels over the next few months. There is expected to be some margin pressure in the next quarter due to increasing raw material prices."

CEAT, the flagship company of RPG Enterprises, is a tyre manufacturer and has a strong presence in global markets.

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