Ceat Ltd Q1 net profit dives 98.6% to Rs1.38 crore
New Delhi: Tyre maker Ceat Ltd on Thursday reported a 98.6% decline in its consolidated net profit at Rs1.38 crore for the June quarter due to destocking by trade partners ahead of the goods and services tax (GST) rollout and higher expenses.
The company had posted a net profit of Rs103.26 crore during the corresponding period of the previous fiscal, Ceat said in a BSE filing.
Total expenses during the quarter under review stood at Rs1,636.13 crore as against Rs1,516.23 in the year ago period.
“Q1 was a challenging quarter for us in light of destocking by the channel partners due to the GST and peak RM prices which hit us at the same time,” Ceat managing director Anand Goenka said.
Total income during the period also declined to Rs1,638.95 crore compared to Rs1,651.83 crore in the corresponding quarter of last fiscal.
On the outlook, Goenka said: “Notwithstanding the short term impact of GST, we expect it to bring positive impact for the tyre industry in the long run.” Ceat stock closed 1.23% down at Rs1,902.35 on BSE.