Tire big CEAT reports net loss of Rs 20 crore in December quarter

Tire big CEAT reports net loss of Rs 20 crore in December quarter

CEAT Managing Director Anant Goenka said, “We are witnessing muted demand in the replacement segment due to tepid consumer sentiment, higher fuel prices and a softer uptick in India’s rural markets. The ongoing semiconductor shortages continue to impact OEM (original equipment manufacturer) passenger segment sales.”

Tire major CEAT on Wednesday reported a united net deficit of Rs 20 crore for the December 2021 quarter, because of muted demand. The organization had posted a net profit of Rs 132 crore in the second from last quarter of the financial year 2020-21. Its revenue from operations, nonetheless, rose to Rs 2,413 crore during the second from last quarter as against Rs 2,221 crore in the year-prior period, CEAT Ltd said in a regulatory filing. The company’s margins keep on being under pressure because of rising item costs that have started to tighten towards the end of the second from last quarter, he expressed.

“We are taking necessary corrective actions to cut costs and are looking at appropriate price increases going forward,” Goenka said.

Elaborating on the positives, he said the tyre maker has gained market share in the passenger segment and seen robust growth in the OHT (off-highway tyre) and international business.

“The two-wheeler space is another exciting space where we continue to be strong,” Goenka said.

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