Tyre maker CEAT Ltd on Wednesday reported a 46.48 per cent decline in consolidated net profit to Rs 97.03 crore for the third quarter ended December 31, impacted by high raw materials costs. The company had posted a consolidated net profit of Rs 181.28 crore in the same quarter last fiscal, CEAT Ltd said in a regulatory filing.
Its consolidated revenue from operations stood at Rs 3,299.9 crore against Rs 2,963.14 crore in the year-ago period, it added.
The total expenses were higher at Rs 3,175.58 crore compared to Rs 2,738.53 crore a year ago. The cost of materials consumed was Rs 2,116.52 crore, up from Rs 1,694.91 crore in the third quarter of the last fiscal, the company said.
“While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price increase in select categories during the quarter,” CEAT Ltd MD & CEO Arnab Banerjee said.
He said the strong year-on-year double-digit revenue growth was driven by the replacement segment.
On the outlook, he said, “The demand continues to remain stable, and our order book pipeline is robust across all segments. Raw material prices look flattish in Q4 and we expect growth momentum to continue”.