Tyre manufacturer Ceat, an RP Goenka group firm, has posted an 83.38% fall in consolidated net profit at Rs 25.43 crore for the fourth-quarter ended March 31, 2022, impacted mainly by rising raw material prices.
A consensus estimate of Bloomberg analysts was expecting the firm to post a consolidated net loss of Rs 9.5 crore.
In comparison, the company had posted a net profit of Rs 153.02 crore for the same period a year ago. For the sequential third-quarter ended December 31, 2021, the Mumbai-based company had posted a net loss of Rs 20.18 crore, it said in a regulatory update.
For the quarter under review, Ceat’s total income rose 13.19% to Rs 2,595.28 crore from Rs 2,292.89 crore recorded during the same year-ago period.
For the fiscal ended March 31, 2022, the company’s net profit fell to Rs 70.58 crore (from Rs 432.30 crore) on a total income of Rs 9,374.81 crore (Rs 7,623.41 crore).
“We are witnessing a recovery in the market, particularly in the replacement and commercial tyre categories. Our international business continues to outperform and we expect it to drive growth in the coming year as well. Margins, however, continue to be under pressure due to rising commodity prices, and other inflationary costs. I am hopeful with Covid restrictions easing in the country, an uptick in GST collections and an improved business sentiment, we can expect a better FY23 for the business,” Ceat Managing Director Anant Goenka said.
The company’s board also recommended a final dividend of Rs 3 per share for the financial year ended March 31, 2022.
The economic situation in Sri Lanka has deteriorated significantly, resulting in a devaluation of the country’s currency. Following this, Ceat incurred an exchange loss of Rs 5.88 crore towards dividends and receivables from its subsidiary and joint ventures in that country for the year-ended March 31, 2022, it said.
During the fiscal, Ceat also incurred an exceptional loss of Rs 1.5 crore due to fire at one of its manufacturing facilities. The payment outgo for employees who had opted for voluntary retirement service stood at Rs 7.03 crore for the year ended March 31, 2022, it added.