Indian tyre maker CEAT (CEAT.NS), opens new tab missed fourth-quarter profit estimates on Tuesday, hurt by surging rubber costs.
The company’s consolidated net profit fell 8.4% to 994.9 million rupees ($11.69 million) during the quarter from 1.09 billion rupees a year ago.
Analysts on average were expecting profit of 1.12 billion rupees, according to data compiled by LSEG.
Quarterly revenue from operations rose 14% to 34.21 billion rupees, helped by a stable demand for tyres, while total expenses grew 16.5%.
Surging natural rubber prices will weigh on tyre makers’ margins for the quarter, analysts have said.
CEAT, whose clients include Tata Motors (TAMO.NS), opens new tab and Maruti Suzuki India (MRTI.NS), opens new tab, was the first listed tyre maker to report results.
Peers MRF (MRF.NS), opens new tab, Apollo Tyres (APLO.NS), opens new tab and JK Tyre (JKIN.NS), opens new tab are expected to report their earnings later.
Comments
Comments are closed for this article.