Indian tyre manufacturing major CEAT Limited reported a net loss of Rs 20 crore during the December-end quarter because of muted demand.
Earlier, the company reported a net profit of Rs 132 crore during the third quarter (Q3) of FY 2020-21. According to a report, the company's revenue from operations increased by Rs 2,413 crore in Q3, compared to Rs 2,221 crore during the same period a year ago. Managing Director of CEAT, Anant Goenka, said that the company is witnessing muted demand in the replacement department due to tepid consumer sentiment, higher prices of fuels and a softer uptick in the rural markets of India. The ongoing shortage of semiconductors affects the original equipment manufacturer (OEM) passenger segment sales. He added that the company's margins continue to face a crisis due to increasing prices of the commodity that have begun to taper down towards the end of Q3. Moreover, CEAT is taking necessary actions to reduce costs and are looking at appropriate price increases forward. Goenka said that the tyre manufacturers have gained market share in the passenger segment and witnessed robust growth in the off-highway tyre (OHT) and overseas business. The two-wheelers segment is another space that will continue to remain strong. Image Source
