Ceat profits plummet on higher NR costs

ERJ staff report (DS)

Mumbai, India -- CEAT Ltd, the RPG Enterprises tyre flagship, on Monday reported net sales for the 12 months to 31 March 2011 of Rs 34690 million (euro 527 million), up 23.6 percent over Rs 28070 million in FY10. Profit before tax for the year stood at Rs 332.4 million (euro 5.05 million), against Rs 2390 million for the same period last fiscal.

The decline in profits is primarily because of the sharp increase in the prices of raw materials, mainly rubber, which could not be fully offset despite price increases being effected during the year.

One of the major highlights for the year was the successful commissioning of Halol radial tyre project in Gujarat, which is expected to substantially add to the bottomline of the company in the future. The state-of-the art radial plant will have an eventual capacity of 150 MT per day and will be fully functional by the third quarter of FY12.

Halol apart, the company aims to double motorcycle sales to 500 000 tyres per month by the end of FY12 by way of an increase in outsourcing capacity.

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Press release from Ceat