New Delhi: Tyre maker Ceat on Wednesday reported consolidated net profit of INR 23.98 crore for the quarter ended June 30, 2021.
The company had posted a net loss of INR 34.76 crore for the corresponding period of the previous fiscal, Ceat said in a press release.
The company has reported total income of INR 1,910.28 crore during the period under review as compared to INR 1,122.98 crore in the same quarter year ago.
According to Anant Goenka, managing director, Ceat, the spike in commodity prices has impacted gross margins, which was partially offset by price increases over the last quarter.
However, with the progressive drop in COVID cases in the last four weeks and a steady increase of vaccination in the latter part of the quarter, we are witnessing a gradual pickup in demand from early June in the replacement market and OEMsAnant Goenka, MD, CEAT
“It has been a challenging quarter with the second wave of COVID-19 restricting demand and rising input costs affecting margins. However, with progressive drop in COVID cases in the last four weeks and a steady increase of vaccination in the latter part of the quarter, we are witnessing a gradual pickup in demand from early June in the replacement market and OEMs,” Goenka said.
Besides the uncertainties of a third wave of COVID infection in the country, he further added, the company expects to see improving consumer confidence and growth going forward. “We will continue to calibrate the market dynamics and align our business plans to the evolving scenario,” Goenka added.
On a standalone basis, the company’s revenue stood at INR 1,898 crore and EBITDA margin at 8.7%, a contraction of over 248 bps vs Q4 FY20-21. Net profit stood at INR 20 crore.
Kumar Subbiah, CFO of Ceat, said, “Our overall margins have been impacted compared to the previous quarter owing to a steep rise in raw material prices and lower revenues during the quarter due to the second wave of COVID-19. While raw material prices have currently remained range-bound, we would still need to take some more price increases to offset the impact.”