CEAT Q2 profit increases to Rs 77 crore, 650 crore investment in Halol plant planned
Ceat Tyres has also announced investment to the tune of INR 650 crores in expansion of their radial tyre Halol manufacturing plant. This increased investment will see output increase by 120 tonnes per day with the plant currently capable of producing 150 tonnes per day. The investment and expansion plans will commence from early 2014 and will take around 18 months to complete.
Ceat Tyres has experienced increased sales in the passenger segment which has equally contributed to increase growth and margins. Operations in Sri Lanka are also increasing on a parallel footing adding to company growth. Ceat caters to tyres in various segments, right from heavy duty trucks and buses to light commercial vehicles besides for earth movers, tractors, cars, motorcycles and scooters.
CEAT Q2 PROFIT SURGES TO RS 77 CR; ANNOUNCES RS 650 CR EXPANSION PLAN
• Net Sales up 9%, at Rs 1,319 crore
• EBITDA grows to 13.8% from 7.2%
New Delhi, India – October 28, 2013
CEAT Limited, an RPG Group company, announced its unaudited results for the second quarter ending September 30, 2013.
On a standalone basis, the India operations reported a revenue growth of 9% year on year at Rs 1,263 crore. PBT rose to Rs 109.7 crore from Rs 4.1 crore in the same quarter last year. EBITDA for Q2FY14 stood at 13.1% compared to 6.7% in the corresponding quarter of the previous year.
The consolidated EBITDA margins stood at 13.8% compared to 7.2% in Q2 last year. The company’s PAT rose to Rs 77 crore from Rs 3.8 crore (YoY), while the net sales zoomed to Rs 1,319 crore as against Rs 1,213 crore in Q2 FY13.
Mr. Anant Goenka, Managing Director, CEAT Limited said, “Q2 has been positive for CEAT with strong volume growth in passenger segments. Going forward, we expect both growth and margins to be on similar levels. Our Sri Lankan operations too continue to show robust and profitable growth.
Mr. Subbarao Amarthaluru, CFO, CEAT Limited said, “On a consolidated basis, we have clocked EBIDTA of around Rs 340 crore for the first half of the current fiscal as compared to Rs 450 crore clocked for the full year ended March 2013. This is indeed very encouraging.”
As passenger car penetration in India continues to increase, CEAT has announced its plan to expand production at its Halol plant. As part of its expansion, it is investing an additional Rs 650-crore to enhance the existing capacity of the radial tyre unit by 120 tonne per day (TPD).
“CEAT is seeing traction in UV radials and passenger cars. In order to cater to the growing demand of CEAT tyres in the domestic replacement market as well as to cater to new OEMs, we are expanding our production in passenger car and UV radials by 120 TPD,” Mr Goenka added.