CEAT standalone revenue up 14%

Kolkata, Feb 7 (IBNS) Leading tyre manufacturer CEAT Limited, an RPG Group company, announced its unaudited results for the third quarter ending December 31, 2012.

On a standalone basis, the India operations reported a revenue growth of 14% year-on-year at Rs 1194.6 crores.

EBITDA for the quarter stood at 8.5% compared to 6.3% in the corresponding quarter of the previous year.

On a consolidated basis, CEAT reported Net Sales of Rs 1239 crores; 13% year-on-year Net Sales growth in Quarter 3, FY 13. Profit before tax stood at Rs 32.6 crores.

The consolidated EBITDA margin stood at 8.9% compared to 6.3% in Q2 last year.

Anant Goenka, Managing Director, CEAT Limited, said, "Q3 has been positive for CEAT with improved sales volumes and falling key raw material prices. Overall there is a 15% increase in volume spread across the segments.

"For the first time, at CEAT, we crossed sales of 5 lac motor cycle tyres per month in the months of October, November and December. We also launched our UVR Ad Campaign, which was well received by consumers and we have been able to convey the brand message to the target audience very strongly."

"Going forward, we expect margins to be stable on account of soft to stable Rubber price. We will continue to focus on improving our product mix and improving operational efficiencies," said Goenka.

Manish Dugar, Chief Financial Officer, CEAT Limited, said, "We have recently signed an agreement to form a joint venture to set up a Tyre manufacturing facility in Bangladesh with A K Khan & Company Ltd., one of Bangladesh's most reputed business houses. The joint venture forms part of the long term strategy for both the Partners to have a presence in the growing tyre market in Bangladesh."

"Additionally, CEAT's Debt Equity ratio is down to 1.7 times," said Dugar.

PBT increased significantly from Rs 4.1 Cr to Rs 25.1 Cr on QoQ basis and on a consolidated basis PBT stands at Rs 32.6 crores. This is after the exceptional expense of VRS of Rs 13.66 crores.