5000% gain in profit in Q1 FY19 results! Shares of this mid-cap company rise 10% in 1 day

CEAT share price: Shares of tyre-maker CEAT zoomed 10% after the company reported a massive 5000% surge in its net profit for the first quarter of 2018.

Shares of tyre-maker CEAT zoomed 10% after the company reported a massive 5000% surge in its net profit for the first quarter of 2018. CEAT stocks surged 9.51% to a high of Rs 1,380.60 per share on the BSE after the company posted a 5,114.6% rise in its consolidated net profit at Rs 71.44 crore for the quarter ended June 2018. The stock closed 7.58% higher at Rs 1,356.15 per share. CEAT shares are categorised under group A list of companies on the BSE.

On the National Stock Exchange, CEAT shares climbed 9.7% to an intra-day high of Rs 1,382.95 and closed 7.86% higher at Rs 1,359.90 per share. For Q1 2018, the tyre-making company posted a profit of Rs 71.44 crore — a massive surge of 5,114.6% — compared with Rs 1.37 crore posted during the like period of 2017. CEAT’s revenue from operations rose 17% to Rs 1,706.3 crore against Rs 1,459.7 crore posted during the same period last year.

In a regulatory filing to the BSE, CEAT said that the board of directors has approved signing of an MoU with the Tamil Nadu government. “Ratified the signing of Memorandum of Understanding (MoU) with Government of Tamil Nadu on July 4, 2018 for setting up of a manufacturing facility at Sriperumbudur Taluka, Kanchipuram District in Tamil Nadu, with an investment of Rs 4000 Crores in a phased manner over a period of 10 years. Under the MoU, the Tamil Nadu Government has agreed to offer various incentives to the company,” the filing said.

Earlier in the month, CEAT said it would manufacture radial tyres for lorries, buses and cars and also two-wheeler tyres in its proposed facility at Sriperumbudur near here, for which it inked a pact with Tamil Nadu Government.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.