CEAT shares slump over 9.3% as Q1 profit plunges
AI Summary
CEAT shares fell 9.3% after the company reported a significant 96.4% drop in quarterly profit, despite a 22.4% increase in revenue. The decline in profits was attributed to raw material inflation and higher finance costs. The board has approved a ₹1,205 crore investment to increase production capacity for two-wheeler tyres by FY31.
CEAT shares slumped 9.3 per cent on Friday after the tyre maker reported a sharp decline in quarterly profit despite posting strong revenue growth, as raw material inflation and higher finance costs weighed on earnings.
The stock traded at ₹3,550.40 on the NSE at 10.20 am after falling to an intraday low of ₹3,471.10 from the previous close of ₹3,829.60.
Consolidated revenue from operations rose 22.4 per cent to ₹4,318 crore in Q1 FY27 from ₹3,529 crore in Q1 FY26 .Net profit, however, plunged 96.4 per cent to ₹4 crore from ₹112 crore in the corresponding period last year.
In addition, the board approved an investment of around ₹1,205 crore to progressively add capacity for 53,000 two-wheeler tyres per day by FY31.
Original Article
Published on Hindu BusinessLine