Tyremaker CEAT's fourth-quarter profit falls on higher costs

JK Tyre & Industries

02/05/2024 15:55

BENGALURU, May 2 (Reuters) - Indian tyremaker CEAT
 CEAT.NS  reported a lower fourth-quarter profit on Thursday,
hurt by higher rubber costs.
    
    WHY IT'S IMPORTANT
    CEAT, whose customers include automakers Maruti Suzuki
 MRTI.NS  and Mahindra & Mahindra  MAHM.NS , is the first Indian
tyremaker to report results this quarter.
    
    CONTEXT
    Domestic sales of overall vehicles in India rose more than
20% in the fourth quarter and production climbed more than 21%,
according to industry data.
    Prices of rubber, a key raw material for tyre manufacturers,
rose roughly 10% in the quarter, according to analysts.
    
    BY THE NUMBERS
    CEAT's fourth-quarter consolidated net profit fell 18.8% to
1.09 billion rupees ($13.06 million) from a year earlier.
Analysts had expected a profit of 1.64 billion rupees, according
to LSEG data.
    The company's revenue from operations rose 4.1% to 29.92
billion rupees.
    CEAT's quarterly expenses rose 3.7% to 27.98 billion rupees,
led by a 5.5% climb in raw material costs.
    
    GRAPHIC
    (Figures in percentage)

 ($1 = 83.4550 Indian rupees)

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Jan to March stock performance of CEAT, peers    https://tmsnrt.rs/4dnZlSN
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 (Reporting by Varun Hebbalalu and Meenakshi Maidas in
Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))