CEAT, the flagship company of RPG Enterprises reported a consolidated net loss of Rs 20 crore on Rs 2,413 crore in revenues in Q3 FY2022 as against Q2 FY2022 due to tepid consumer sentiments in the tyre replacement segment, higher fuel prices and a slowing of demand in rural markets. The company’s OEM business in PVs was affected by the ongoing semiconductor shortage.
In comparison, the company had witnessed a net profit of nearly Rs 132 crore during Q3FY2021. The tyre major's revenues, however, recorded revenues of Rs 2,221 crore in Q3FY2021, it said in a regulatory filing.
Anant Goenka, managing director said the company continues to remain under pressure on account of rising commodity prices that have begun to taper down towards the end of Q3. "We are taking necessary corrective actions to cut costs and are looking at appropriate price increases going forward," Goenka said in a statement, emphasizing that on the positive side, CEAT has gained .market shares in the passenger segment and has seen robust growth in the off-highway tyre, and international business. "The two-wheeler space is another exciting space where we continue to be strong," he added.
Kumar Subbiah, CFO at CEAT said a weakened market scenario and rising input costs continue to put pressure on company's margins, leading to an increased debt levels during the quarter. "We have brought down our finished goods inventory levels and have already taken the necessary steps to bring down the raw material inventory in Q4, which will help balance our cash flows and keep a check on our overall debt," said Subbiah.