Mumbai: Tyremaker Ceat Ltd swung to a profit in April-June from a loss a year ago helped by softening raw material prices and a better sales in the higher margin replacement segment.
The company reported a net profit of Rs60.2 crore in April-June against a net loss of Rs10.67 crore, while net sales rose marginally to Rs673 crore from Rs653 crore last year.
“For the current quarter, our sales have been relatively flat. We have gained from sales mix improvement and the fall in raw material prices,” Sunil Sapre, chief financial officer of Ceat, told the agency.
Rubber prices, which make up more than 60% of the cost of tyres, have fallen 17% on year. Prices in the week ending 18 July were at Rs10,900 per 100 kg, according to the rubber board.
Ceat now gets 79% of its sales from the higher margin replacement segment, which contributed to boosting profits, Sapre said, adding it is also focusing on increasing exports.
Exports now contribute 12-13% of revenues and the rest from sales to original equipment makers.
Shares of Ceat ended up 4.91% at Rs129.20 in a firm Mumbai market that closed up 0.97%.