Ceat plunges over 8% post Q1 results; GST, raw material prices weigh

NEW DELHI: Shares of tyre manufacturer Ceat slipped as much as 8.84 per cent on Friday after the company on Thursday registered a 98.6 per cent fall in its consolidated net profit at Rs 1.38 crore for the June quarter due to destocking by trade partners ahead of the GST rollout and higher expenses.

The company had reported a net profit of Rs 103.26 crore in the corresponding quarter last year.

The scrip was trading 5.33 per cent down at Rs 1800.90 around 9.26 am (IST). It however ended the session 8.84 per cent down at Rs 1,734.10.

Shares of the company opened at Rs 1,781 and touched a high and low of Rs 1,833 and Rs 1,780.05, respectively.

"Q1 was a challenging quarter for us in light of destocking by the channel partners due to the GST and peak RM prices which hit us at the same time," Ceat Managing Director Anand Goenka said.

Consolidated total income during the period slipped to Rs 1,638.95 crore for the quarter under review compared to Rs 1,651.83 crore in the same period last year.

On the outlook, Goenka said: "Notwithstanding the short term impact of GST, we expect it to bring positive impact for the tyre industry in the long run."