Mumbai (Maharashtra) [India], Jan 19 (ANI): RPG Group company Ceat Ltd on Tuesday reported a consolidated profit after tax of Rs 132 crore in the October to December quarter on revenues of Rs 2,221 crore.
The consolidated operating profits totalled Rs 240 crore on the back of higher sales revenues and less than proportionate increase in costs, said the tyre manufacturer.
The demand for tyres is largely a derived demand. In the last two quarters, the company benefited from a sharp pick-up in tyre demand due to automobiles production getting back to pre-Covid levels. Also, the retreading demand is picking up.
Managing Director Anant Goenka said the quarter's growth was achieved due to new capacities across segments, particularly passenger car, two-wheeler and farm segments.
"The replacement market has been buoyant because of consumer preference in personal mobility and strong rural demand," he said.
Chief Financial Officer Kumar Subbiah said the continuous effort to judiciously manage cash helped in bringing down company's debt by Rs 260 crore in the December quarter that helped in qualitative improvement in leverage ratios and balance sheet.
Ceat produces over 15 million tyres a year and offers a wide range for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws. (ANI)