Indian tyremaker Ceat's Q2 profit slumps 81% on higher input costs

JK Tyre & Industries

07/11/2022 10:44

BENGALURU, Nov 7 (Reuters) - Indian tyremaker Ceat Ltd  CEAT.NS 
reported a bigger-than-expected 81.4% tumble in second-quarter profit on Monday,
hurt by higher input costs.
    Consolidated net profit fell to 78.3 million Indian rupees ($955,811) in the
three months ended Sept. 30, from 419.8 million rupees a year earlier.
    Analysts, on average, had expected the company's profit to drop 51% to 207.6
million rupees, according to Refinitiv IBES data.
    Ceat's revenue from operations rose 18.1% to 28.94 billion rupees in the
quarter.
    That was more than offset by a 19.3% rise in total expenses, to 28.64
billion rupees, with input costs jumping 24%.
    Oil prices have risen sharply after the Russia-Ukraine conflict since the
early part of this year, raising the cost of petrochemicals that are a key
component in tyre manufacturing.
    Last week JK Tyre and Industries Ltd  JKIN.NS  posted a 23% fall in
quarterly profit as its input costs shot up 20.7%.
 
 ($1 = 81.9200 Indian rupees)
 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D'Souza)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))