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Ceat net grows 27% in Q3 at Rs 113 cr

Tyre maker Ceat today posted a net profit increase of 27% at the consolidated level to Rs 113 crore for the quarter ended December 31 as against Rs 89 crore posted in the same quarter last year.

"Reduction in average borrowings levels coupled with reduction in interest rates led to interest costs reduction this quarter. Our debt/equity currently stands at a healthy 0.4,” said Manoj Jaiswal, Chief Financial Officer, Ceat.

Net consolidated sales of the company fell 2% to Rs 1,374 crore during the reporting quarter as compared to Rs 1,399 crore posted in the corresponding quarter last year.

Finance cost declined to Rs 19 crore, a fall of 39% as against Rs 31 crore.

"Given the strong growth potential in the OTR sector and its synergy with CEAT capabilities, we have taken a strategic decision to increase our focus there. CSTL has been created to ensure dedicated focus and drive towards this opportunity. We will be investing Rs 330 crore for an initial capacity of 40 MT/day. The facility, with a primary focus on exports market, will witness phased expansion over the years,” said, Anant Goenka, Managing Director, Ceat.