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Mumbai: Tyres maker Ceat’s profits nearly halved during the March quarter as higher crude and rubber prices continued to weigh on the company’s margins.

The company reported a consolidated profit of Rs 25 crore, down 84% year-on-year. Consolidated revenue during the quarter improved by 13% to Rs 2,592 crore backed by higher prices and sales.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 28% year-on-year to Rs 187 crore. EBITDA margin shrank by 418 basis points to 7.2%.

Anant Goenka, the managing director of Ceat said that there was a recovery in the market, particularly in the replacement and commercial tyre categories. The international business too performed well and the company expects it to drive growth in the coming year.

“Margins, however, continue to be under pressure due to rising commodity prices and other inflationary costs,” Goenka said in a press statement.

The company declared a dividend of Rs 3 per share. Its stock closed 0.62% higher on the BSE on Thursday at Rs 1,090.25. Benchmark Sensex was flat.

For the complete fiscal year FY22, Ceat reported a consolidated top line of Rs 9,363 crore and a profit of Rs 71 crore. EBITDA came in at Rs 739 crore.

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