CEAT reports net profit of Rs 182 crore for Q2 FY2021

by Autocar Pro News Desk , 27 Oct 2020

Leading tyre maker CEAT, an RPG Group company has announced its financial results for the second quarter and half year ending on September 30, 2020 (H1 and Q2 FY2021). The company reported consolidated revenue of Rs 1,978 crore (17% YoY) EBITDA margin stood at 15.5% and net profit at Rs 182 crore compared to Rs 44 crore for the same period last year.

Commenting on the results as well as the outlook of the business, Anant Goenka, MD, CEAT said, “We have witnessed strong growth across categories on the back of a challenging business environment. We ramped up our capacities to pre-Covid levels very quickly and ensured on time supplies to customers. We continued our focus on the wellbeing of our people and partners and have embarked on reducing our costs, which should pay further dividend over the next few quarters.”

“Demand for the next quarter continues to look strong, with an uptick in rural and personal mobility, and channel filling in preparation of ongoing festive demand. We are also working on building resilience into our supply chain as we ramp up sourcing locally, in line with the government's vision of an Aatmanirbhar Bharat. We remain optimistic for the growth of the business,” added Goneka.

Kumar Subbiah, CFO, CEAT said, "It has been a good quarter as we witnessed a significant uptick both in terms of Revenue and Margins. While the revenue growth was aided by good volume growth, the margins expanded on account of higher scale of operations, lower raw material costs and overall cost management. The focus on overall cashflows helped to bring down the debt level during the quarter."

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