Ceat Q2FY22 Results: Consolidated net profit skids 77% to Rs 42 cr amid high raw material cost

Tyre maker 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 expenses, specially cost of materials consumed.

The company, which had 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 Ltd said in a regulatory filing.

Total expenses were higher at Rs 2,401.64 crore as compared to Rs 1,814.89 crore in the corresponding period last fiscal.

Cost of materials consumed stood at Rs 1,616.59 crore, as against Rs 1,051.57 crore earlier, the filing added.

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 Chowdhary as additional non-independent director, it added.