New Delhi: Tyre maker Ceat Ltd Thursday reported nearly three-fold jump in consolidated net profit for the third quarter ended December 31, 2012 at Rs 22.44 crore, propelled by higher sales volumes and lower raw material cost.
The company had posted net profit of Rs 8.12 crore in the year-ago period.
Net sales during the period under review stood at Rs 1,238.5 crore as compared to Rs 1,092.86 crore in the same period last fiscal, Ceat Ltd said in a statement.
Commenting on the results, Ceat Ltd Managing Director Anant Goenka told PTI: "We have been able to post a good profit during the quarter primarily due a decline in rubber price and good growth in sales volumes".
During the quarter, rubber prices came down by 78 percent to around Rs 180 per kg, while the company's sales volume grew by 13 percent, he added.
"Moreover, we also had a better product mix during the period with an increase in the passenger car tyre component," he said, adding that the commercial vehicle to passenger car tyre ratio stood at 55:45 during the quarter as compared to 60:40 in the year-ago period last fiscal.
Moreover, the company also crossed sales of five lakh motorcycle tyres per month in the months of October, November and December.
During the quarter, the company said it had incurred an expense of Rs 13.66 crore towards voluntary retirement scheme of its Bhandup unit (near Mumbai) where 188 employees opted for the offer.
It had also made an investment of Rs 10.96 crore in its Bangladesh subsidiary. Subsequent to the quarter end, it had entered into a 70:30 joint venture with A K Khan Company, Ceat said.
"The plant is expected to be operational by the third quarter of FY'15. In the initial phase, it will have a capacity of 65 tonnes per day, which would soon be ramped up to 110 tonnes per day," Goenka said.
It will produce tyres for small commercial vehicles, light commercial vehicles and motorcycles.
"We are looking to have a market share of 35-40 percent in the next three to four year when the market (in Bangladesh) is estimated to attain a size of Rs 1,500 crore," he said.