Ceat profits soar in 12 months to March 2007

New Delhi, India - Ceat Tyres has reported a strong increase in sales and profits for the three months and the twelve months ended 31 March, 2007.

For the twelve month period, net profit stood at Rs 392.5 million (€6.97 million), up by a factor of 100 on the previous year's Rs 3.70 million. Sales for the period increased 22 percent, to Rs 21 350 million (379 million), compared with Rs 17 470 million. The net profit margin stood at 1.8 percent, while operating profit margin (EBITDA) stood at 7.1 percent, up from 5.2 percent a year ago.

Paras Chowdhary, managing director of CEAT said “the increase in operating margins is mainly attributed to increase in sale of higher value added products, sustained efforts towards achieving cost optimisation, restructuring of debt portfolio leading to a lower interest burden despite increase in interest rates, and growth in business.” Chowdhary said he expects the profit margins to increase going forward.

The company said it will in future focus only on the tyre business, and expects to boost its presence in Europe, notably in radial truck tyres. Chowdhary said Ceat expects to build a greenfield radial truck tyre facility.

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CEAT FY 07 - Net Profit up 75 times Dividend - Rs. 1.80 Per share Press release from Ceat (India)

Financial data from Ceat

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