Quarter Figures Reveal Mixed Results for Indian Manufacturers

Recently released quarterly results for India’s Ceat Ltd show robust growth in the quarter to 30 September 2007. While net sales increased by a respectable but unremarkable 8.5 per cent over the same three months of 2006, to Rs5.83 billion (£72.65 million), operating profit more than doubled during the period. For the quarter to 20 September 2007 Ceat achieved an operating profit of Rs 622.9 million (£7.76 million), up from Rs 307,3 million (£3.82 million) a year earlier. Pre-tax profit showed an even more impressive increase, rising to Rs405.6 million (£5.1 million), a 470.5 per cent increase on the September 2006 figure of Rs71.1 million (£885,600).

Results for the same quarter did not yield such positive news at Goodyear India, however. The manufacturer’s total income declined by 7.4 per cent for the three months to September 30, 2007, to Rs2.28 billion (£28.46 million). Operating profit too was slightly lower than in the three months to the end of September 2006, dropping 3.9 per cent to Rs203.3 million (£2.53 million). Of greater concern to investors was Goodyear India’s net profit, which slumped by 31.2 per cent to Rs105.6 million (£1.31 million) from Rs153.5 million (£1.91 million) a year earlier.