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Ceat consolidated YoY net profit rises 7.6% in Q2 FY14-15, stands at Rs 82.35 cr

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Pune (Oct 30, 2014): CEAT Limited, an RPG Group company, announced its unaudited consolidated results for the second quarter ended September 30th, 2014. The company reported revenue of Rs 1,425.76 crore, a growth of 8.1% YoY. EBITDA margins for the quarter stood at 12.3% compared to 13.3% in the corresponding quarter of the previous year. Profit before tax rose to Rs 124.84 crore for the quarter from Rs 113.68 crore recorded in the same quarter last quarter, a jump of 9.8%. The PBT margins have risen to 8.8% from 8.6% (YoY).

The board has approved the setting up a two-wheeler facility with a capacity of 12.5 lakh tyres per month including motorcycle, scooter and three-wheeler tyres. This would require a total investment of about Rs 420 crore. The plant is slated to start production by April 2016. The board has also decided on an equity investment of Rs 50 crore in a subsidiary for off-the-highway tyres business.

“With this new facility, we aim to further increase our market share in the two-wheeler segment in the coming years. The said project cost of Rs 420 crore will be funded through a combination of internal accruals and debt,” Mr. Anant Goenka, Managing Director, CEAT Limited, said.

Commenting on the company’s performance during the quarter, Mr. Subba Rao Amarthaluru, Chief Financial Officer, CEAT Limited, said, “This quarter has been positive for CEAT as EBIDTA margins bounced back towards a higher trajectory. Going forward, we expect the environment and operations to further improve.”