Ceat is a bright spark this morning. From its close of Rs.1311 yesterday, the stock price opened with a gap at Rs.1319 and rose to hit a 52-week high at Rs.1405. Volumes are up over two times.
The company posted a 2.5 times jump in its consolidated net profit for the quarter at Rs.132 crore. This was on a 25% (YoY) increase in revenue at Rs.2221.25 crore.
The company said that this performance was achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments. The replacement market was buoyant because of consumer preference in personal mobility and strong rural demand.
The company said that currently all its factories were operating at high capacity levels and was confident in maintaining strong growth levels over the next few months. But it expects some margin pressure in the next quarter due to increasing raw material prices.