Ceat Q2 net dips 63% on high cost

Tyre maker Ceat on Thursday reported a 63.3% decline in net profit at Rs 5.6 crore for the quarter ended September 30 2011, due to higher interest and depreciation cost.

Tyre maker Ceat on Thursday reported a 63.3% decline in net profit at Rs 5.6 crore for the quarter ended September 30 2011, due to higher interest and depreciation cost.

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The company had posted a net profit of Rs 15.3 crore in the corresponding period last year. Total income during the quarter, rose by 32.7% to R1,118.0 crore from Rs 842.5 crore in the year-ago period.

“Our profit went down because of higher interest and depreciation costs. We have invested about Rs 700 crore in our new plant at Halol, which has not reached its full production capacity, and hence our interest burden is higher,” said Anant Goenka, deputy managing director, Ceat.