Indian tyremaker Ceat`s Q2 profit slumps 81% on higher input costs
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Indian tyremaker Ceat Ltd reported a bigger-than-expected 81.4% tumble in second-quarter profit on Monday, hurt by higher input costs.
Consolidated net profit fell to 78.3 million Indian rupees ($955,811) in the three months ended Sept. 30, from 419.8 million rupees a year earlier.
Analysts, on average, had expected the company's profit to drop 51% to 207.6 million rupees, according to Refinitiv IBES data.
Ceat's revenue from operations rose 18.1% to 28.94 billion rupees in the quarter.
That was more than offset by a 19.3% rise in total expenses, to 28.64 billion rupees, with input costs jumping 24%.
Oil prices have risen sharply after the Russia-Ukraine conflict since the early part of this year, raising the cost of petrochemicals that are a key component in tyre manufacturing.
Last week JK Tyre and Industries Ltd posted a 23% fall in quarterly profit as its input costs shot up 20.7%. ($1 = 81.9200 Indian rupees)
