Ceat Q2 net profit up by 30 percent

RPG Group's flagship company Ceat Ltd on Tuesday posted an increase in its consolidated profit by 30 percent for the quarter ended September 30 at Rs. 107 crore although its revenue declined marginally by two percent at Rs. 1,400 crore.

Its net profit during the same period last year stood at Rs. 82 crore while the revenue was pegged at Rs.1,425 crore.

In the review period, the company's EBITDA touched Rs.202 crore, a 15 percent increase over the same quarter in the last fiscal.

On a standalone basis, the net profit rose by 40 percent in the quarter under review at Rs. 115 crore as compared to Rs.82 crore in the second quarter of 2014-15.

"This has been a momentous quarter for the company which saw phase II of our Halol plant commence operations thereby augmenting our production capacity in the PCR & UVR segment. The dips in crude and rubber prices were welcome, though Chinese products flooding the market impacted the industry last quarter and our top line to a certain extent.

"However, margins improved largely due to lower raw material cost coupled with improving product mix," managing director Anant Goenka said in a statement.

During the period, ace batsman Suresh Raina was roped in by the company for a 3-year bat endorsement deal.

"In the upcoming quarters, strategic product introductions will play a significant role as we see demand increase from the OEM (original equipment manufacturer) segment while in replacement markets the passenger segment comprising of PCR, UVR and 2-wheeler tyres would be the key," Goenka added.