Tyres move along a conveyor belt on the production line. (Photographer: Andrey Rudakov/Bloomberg)

Ceat Posts Its Highest Profit Decline Of FY17

Tyre manufacturer Ceat Ltd. reported a 32.6 percent decline in its consolidated net profit during the January-March quarter of financial year 2016-17. This was the company's third profit decline in FY17.

Net profit for the period fell 32.6 percent to Rs 66.3 crore compared to Rs 98.3 crore during the corresponding quarter last year. The consensus estimates of analysts tracked by Bloomberg stood at Rs 79 crore. A 27 percent increase in raw material costs dented profits during the quarter. Costs increased to Rs 895 crore compared to Rs 705 crore last year.

Revenue for the quarter saw a marginal growth of five percent to Rs 1,641 crore compared to Rs 1,563 crore in the same period an year ago.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 29 percent to Rs 132 crore compared to Rs 186 crore last year. EBITDA margins fell to 8 percent from 11.9 percent in the year ago period.

Shares of the company fell as much as 2.58 percent to Rs 1,503 on the Bombay Stock Exchange, post the results announcement.