Shares of CEAT Ltd witnessed heavy selling pressure in early trade on Thursday after the tyre major reported a consolidated net loss of Rs 20 crore for the December 2021 quarter.
The stock slumped to a 52-week low of Rs 1,051.30 on the BSE, registering a fall of 7.24 per cent over its previous closing price. It was later trading at Rs 1,104, down 2.81 per cent on the BSE.
On Wednesday, CEAT reported a consolidated net loss of Rs 20 crore for the December 2021 quarter, due to muted demand. The company had posted a net profit of Rs 132 crore in the third quarter of 2020-21.
Its revenue from operations, however, rose to Rs 2,413 crore during the third quarter as against Rs 2,221 crore in the year-ago period, CEAT Ltd said in a regulatory filing on Wednesday.
''We are witnessing muted demand in the replacement segment due to tepid consumer sentiment, higher fuel prices and a softer uptick in India's rural markets.
“The ongoing semiconductor shortages continue to impact OEM (original equipment manufacturer) passenger segment sales,'' CEAT Managing Director Anant Goenka said.
The firm's margins continue to be under pressure due to rising commodity prices that have begun to taper down towards the end of the third quarter, he said.
''We are taking necessary corrective actions to cut costs and are looking at appropriate price increases going forward,'' Goenka said.
(With inputs from PTI)