CEAT Profit Declines 13% in First Quarter

Ceat Tyres Ltd. recorded a 13.5 percent decline in net profit to Rs 105.1 crore in the April-June quarter of the financial year 2016-17, from Rs 121.5 crore in the same quarter last year.

Revenue grew 4 percent to Rs 1,460.9 crore from Rs 1,404.2 crore on a year-on-year basis, according to the company’s filing on the Bombay Stock Exchange. Other income stood at Rs 5.6 crore at the end of the quarter.

Earnings before interest, tax, depreciation and amortisation fell 14.1 percent to Rs 176 crore from Rs 204.9 crore over the year. EBITDA margin also fell to 12 percent from 14.6 percent in the corresponding quarter last year.

The drop in profitability margin was largely due to higher brand investments and “some price drops that were passed on to the consumers”, according to the company’s press release on the National Stock Exchange.