CEAT net sales up 23.6% in FY11

Company Brief

Chennai , May 2, 2011

CEAT Ltd, the RPG Enterprises tyre flagship, on Monday reported net sales for the year of Rs 3469 crore, up 23.6% over Rs 2807 crore in FY10.

Profit before tax (PBT) for the year ended March 31, 2011 stood at Rs 33.24 crore, against Rs 239 crore for the same period last fiscal.

The decline in profits is primarily because of the sharp increase in the prices of raw materials, mainly rubber, which could not be fully offset despite price increases being effected during the year.

CEAT has invested heavily in Q2 & Q3 FY11 to strengthen the Brand which will help the company improve market share for consumer categories.

Commenting on the performance, CEAT Managing Director Mr. Paras K Chowdhary said, "We are happy that we managed to hold our own despite the sharp increase in raw material prices during the year. The immediate future continues to look challenging, but I am confident that the steps we have taken to mitigate risks will ensure that CEAT continues unhindered on its agenda for growth."

Halol Project Commissioned

One of the major highlights for the year was the successful commissioning of Halol radial tyre project in Gujarat, which is expected to substantially add to the bottomline of the company in the future. The state-of-the art radial plant will have an eventual capacity of 150 MT per day and will be fully functional by the third quarter of FY12. Halol apart, the company is increasing motorcycle sales from 2.5 lakhs to 5 lakh tyres per month by the end of FY12 by way of an increase in outsourcing capacity. With raw material prices stabilising, the Halol capacity ramp-up and an improved product mix, CEAT will be well positioned for strong growth in the future.

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