Ceat Q2 net profit drops 86 pc to Rs 6 crore

Tyre maker Ceat on Monday said its consolidated net profit declined by 86 per cent to Rs 6 crore for the second quarter ended September, hit by enhanced expenses.

The company had posted a net profit of Rs 42 crore in the July-September period of previous fiscal.

Revenue from operations, however, rose to Rs 2,894 crore as against Rs 2,452 crore in the September quarter last year.

The companys total expenses rose to Rs 2,864 crore in the second quarter from Rs 2,402 crore in the year-ago period.

The company said its board has approved an additional investment of around Rs 396 crore to enhance capacity of farm radial tyres at the Ambarnath plant by 55 tonnes per day (TPD) over a period of next two years.

The investment is proposed to be funded through a mix of debt and internal accruals, it added. Shares of the company on Monday ended 1.61 per cent up at Rs 1,608.05 apiece on the BSE.

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