InvestorQ : How did Ceat report such a sharp growth in profits in the Dec-20 quarter?
swati Bakhda made post

How did Ceat report such a sharp growth in profits in the Dec-20 quarter?

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Sam Eswaran answered.
2 months ago
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Ceat reported growth in PAT of 152% at Rs.132.34 crore as revenues were up 26.08% at Rs.2,221.25 crore. Demand for tyres picked up with a pick-up in the auto demand and also from the secondary retreading demand becoming robust with transport back on wheels. Both segments are gradually getting back to pre-COVID levels.

Net profit for CEAT would have been higher but for the higher tax impost. The company also took an exceptional loss of Rs.12.27 crore in Dec-20 quarter due to the proposed VRS. It also had a loss due to semi-finished goods not able to be used after the lockdown was imposed.

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