Ceat Ltd on Monday reported a 77 per cent decline in consolidated net profit at Rs 42.28 crore for the second quarter ended September 30, impacted by higher input costs.
The company, which posted a consolidated net profit of Rs 182.18 crore in the same quarter last fiscal, also said its board at a meeting held on Monday approved raising of up to Rs 500 crore through issuance of debt securities on a private placement basis.
Consolidated revenue from operations during the quarter under review stood at Rs 2,451.76 crore as against Rs 1,978.47 crore in the year-ago period, Ceat said in a regulatory filing.
Ceat Ltd Managing Director Anant Goenka said the overall market demand continues to be robust, despite some lag in commercial and farm categories.
The company witnessed strong growth on account of good performance in the replacement market, particularly in the passenger vehicles segment, he noted.
''The rising input cost has impacted our gross margins, it has been partially offset by price adjustments over the last quarter,'' Goenka added.
Total expenses were higher at Rs 2,401.64 crore as compared to Rs 1,814.89 crore in the corresponding period last fiscal. The cost of materials consumed stood at Rs 1,616.59 crore, as against Rs 1,051.57 crore earlier.
Ceat Ltd said its board approved raising of up to Rs 500 crore through issuance of non-convertible debentures (NCDs) which can be listed/unlisted, secured/unsecured or such debt securities on a private placement basis in one or more tranches. The board also approved the appointment of Parak K Choudhary as an additional non-independent director, it added.
Ceat shares down
Shares tumbled nearly 10 per cent after the company reported a 77 per cent decline in consolidated net profit for the second quarter ended September 30.
The stock tanked 9.92 per cent to Rs 1,165 on the BSE.
At the NSE, it tumbled 7.94 per cent to Rs 1,191.
