Tyre maker Ceat posted weak set of numbers in the third quarter with single digit margins for the first time in at least eight quarters. Company’s Chief, Anant Goenka said higher commodity prices and demonetisation impacted the margins.
“Two impacts have happened one is commodity prices are beginning to come up, natural rubber is seeing price increase and then the impact of demonetisation,” said Goenka while speaking to CNBC-TV18.
The company is also looking at price increase over the course of next 3 to 4 months due to the higher material prices.
Goenka also said that price reductions over the last year has impacted value and note ban has hit revenue growth significantly.The company reported a 25.30 percent decline in its consolidated net profit at Rs 83.83 crore for the third quarter ended December 31, 2016.It had posted a net profit of Rs 112.23 crore for the same period of previous fiscal.Its total income from operations, however, rose to Rs 1,557.21 crore from Rs 1,483.83 crore in the year-ago period, Ceat Ltd said in a BSE regulatory.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
