Ceat Q3 net profit surges ; to build OTR plant
Ceat’s net profit reported a double digit rise in its consolidated net profits in the third quarter of FY 15-16. Consolidated net profit rose 27% to Rs113 crore in the Oct-Dec 2015 period against Rs89 crore reported in the same period of previous year.
Manoj Jaiswal, Chief Financial Officer, Ceatm said, “Reduction in average borrowings levels coupled with reduction in interest rates led to interest costs reduction this quarter. Our debt/equity currently stands at a healthy 0.4.”
Net consolidated sales of the company fell 2% to Rs 1,374 crore during the quarter compared with Rs 1,399 crore posted in the corresponding quarter last year.
The Mumbai-based company also announced its plans to invest Rs300 crore to build an off-road radial tyres (OTR) manufacturing plant in Maharashtra to export market.
Ceat has already transferred to land to its subsidiary Ceat Speciality Tyres Ltd (CSTL), in which the company made an equity investment of Rs25 crore, to sept the plant.
The OTR plant will have an initial capacity of 40 metric tonnes a day.