(Reuters) -Indian tyre maker CEAT missed fourth-quarter profit estimates on Tuesday, hurt by surging rubber costs.
The company’s consolidated net profit fell 8.4% to 994.9 million rupees ($11.69 million) during the quarter from 1.09 billion rupees a year ago.
Analysts on average were expecting profit of 1.12 billion rupees, according to data compiled by LSEG.
Quarterly revenue from operations rose 14% to 34.21 billion rupees, helped by a stable demand for tyres, while total expenses grew 16.5%.
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KEY CONTEXT
Surging natural rubber prices will weigh on tyre makers’ margins for the quarter, analysts have said.
CEAT, whose clients include Tata Motors and Maruti Suzuki India, was the first listed tyre maker to report results.
Peers MRF, Apollo Tyres and JK Tyre are expected to report their earnings later.
PEER COMPARISON
Estimates Analysts’ sentiment
(next 12
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to price Div yield
TDA growth(%) growth(%) rating* analysts target** (%)
CEAT 16.87 7.44 15.63 45.06 BUY 16 0.92 0.99
MRF 26.09 11.86 7.96 25.53 HOLD 4 1.12 0.16
Apollo Tyres 15.92 7.68 7.10 35.03 BUY 25 0.92 1.30
JK Tyre & Industries 11.08 6.74 6.85 32.17 BUY 5 0.76 1.45
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JAN-MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.3050 Indian rupees
($1 = 85.1420 Indian rupees)
(Reporting by Aleef Jahan; Editing by Savio D’Souza and Shreya Biswas)
