Tyre major CEAT on Wednesday reported a consolidated net loss of Rs 20 crore for the December 2021 quarter, due to muted demand.
The company had posted a net profit of Rs 132 crore in the third quarter of the financial year 2020-21.
Its revenue from operations, however, rose to Rs 2,413 crore during the third quarter as against Rs 2,221 crore in the year-ago period, CEAT Ltd said in a regulatory filing.
CEAT Managing Director Anant Goenka said, "We are witnessing muted demand in the replacement segment due to tepid consumer sentiment, higher fuel prices and a softer uptick in India's rural markets. The ongoing semiconductor shortages continue to impact OEM (original equipment manufacturer) passenger segment sales."
The firm's margins continue to be under pressure due to rising commodity prices that have begun to taper down towards the end of the third quarter, he stated.
"We are taking necessary corrective actions to cut costs and are looking at appropriate price increases going forward," Goenka said.
Elaborating on the positives, he said the tyre maker has gained market share in the passenger segment and seen robust growth in the OHT (off-highway tyre) and international business.
"The two-wheeler space is another exciting space where we continue to be strong," Goenka said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)