India's CEAT second — quarter profit slumps amid higher rubber prices

Oct 14 (Reuters) — Indian tyre maker CEAT on Wednesday reported a nearly 40% fall in quarterly net profit, as rising raw material prices squeezed margins. The Mumbai-based company posted a consolidated net profit of 1.12 billion rupees ($11.77 million) in the three months ended September 30, compared with 1.86 billion rupees a year earlier. Here are more details: Indian tyre makers faced higher raw material costs during the quarter as natural rubber prices stayed elevated due to supply shortages and adverse weather in key producing countries, which forced companies to raise prices. Core margins narrowed to 9.5% during the quarter from 13.5% a year earlier. CEAT, however, reported a 26.2% increase in revenue, helped by higher demand from commercial and passenger vehicle manufacturers. Strong vehicle demand in the second quarter aided CEAT's sales volumes, alongside higher demand in the replacement market, which is a key revenue driver. ($1 = 95.1500 Indian rupees) (Reporting by Saikeerthi and Aishwarya Jain in Bengaluru; Editing by Sonia Cheema) ((Saikeerthi@thomsonreuters.com;)