Tyre major Ceat has registered gross turnover of Rs 451.10 crore and the net turnover stood at Rs 377.55 crore during the first five months of 1998-99. This was announced by chairman H V Goenka at the company's 39th AGM held here yesterday.
Responding to shareholder queries about the Rs 20 crore excise and penalties that the company has been asked to cough up by the Cegat Goenka said the company had appealed to the body and a final order from Cegat was still awaited.
"We have also met the revenue secretary and put forward our point," he said.
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The company is currently scouting for a location to start a third plant primarily for radial tyres. "We are looking at locations in any of five states -Madhya Pradesh, Tamil Nadu, Gujarat, Maharashtra and Karnataka" said Goenka. However, nothing concrete has materialised yet.
Shareholders yesterday passed a resolution enabling the company to issue securities for a sum not exceeding Rs 150 crore on a private placement basis. Goenka said that the securities would be placed only with financial institutions.
Goenka also said that Ceat was in the process of looking for a strategic partner for a radial technology-tie-up. "We are going to build a strong position in car radials in the near future."
"Ceat will continue to lift its requirements of the Maestro radial tyres from South Asia Tyres till we set up our own facilities", said Goenka. The company is looking at capital expansion to the tune of Rs 100 crore in the next 12 to 18 months. Commenting on Ceat's last year's performance Goenka said, "I was optimistic that things would improve but the optimism was somewhat misplaced."
Ceat saw a drop in income from Rs 1315.96 crore to Rs 1251.14 crore in 1997-98. However, net profits doubled from Rs 6.61 crore to Rs 13.75 crore.
Goenka said he expected the combined turnover from Sri Lankan affiliate Associated Ceat Pvt (ACPL) and its strategic alliance with Sri Lankan tyre company Kelani (which is in the final stages) to touch Rs 200 crore in the current fiscal. In 1997-98, ACPL recorded a net profit of Sri Lankan Rs 11.94 crore. on a turnover of Sri Lankan Rs 59.52 crore.