Ceat is trading higher by 3% at Rs 175, extending its previous day’s 6% rally, after reporting twenty-fold jump in consolidated net profit at Rs 77 crore for the quarter ended September 2013 (Q2) on back of strong volume growth and lower raw material cost. The company engaged in auto tyres and rubber products had profit of Rs 3.8 crore in a year ago quarter.
The company said its consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year.
Going forward, the company expects both growth and margin to be on similar levels, said Anant Goneka, managing director, Ceat.
Meanwhile, as part of its expansions, the company is investing an additional Rs 650 crore to enhance the existing capacity of the radial tyre unit by 120 tonne per day (TPD).
The stock opened at Rs 173 and touched high of Rs 177, its highest level since October 2010 on BSE. A combined 1.04 million shares have changed hands on the counter so far on BSE and NSE. So far in current month, the stock has rallied 45% from Rs 122 compared to 6.7% rise in benchmark index.
The company said its consolidated EBITDA margin improved by about 700bps at 13.8% compared to 7.2% in Q2 last year.
Going forward, the company expects both growth and margin to be on similar levels, said Anant Goneka, managing director, Ceat.
Meanwhile, as part of its expansions, the company is investing an additional Rs 650 crore to enhance the existing capacity of the radial tyre unit by 120 tonne per day (TPD).
The stock opened at Rs 173 and touched high of Rs 177, its highest level since October 2010 on BSE. A combined 1.04 million shares have changed hands on the counter so far on BSE and NSE. So far in current month, the stock has rallied 45% from Rs 122 compared to 6.7% rise in benchmark index.