Ciet reports steep 96% profit fall, shares dip further

Ciet, a leading tyre manufacturer, saw its shares dip further on Friday after announcing a dramatic 96% drop in net profit for the quarter that ended on June 27. Net earnings fell to just 4 crore rupees, a sharp contrast to the 112 crore recorded in the same quarter last year. The company did manage to grow its operating revenue by 22.4% to reach 4,318 crore rupees, driven by strong demand across its product portfolio. However, the benefit of higher sales was offset by rising raw‑material costs, especially due to the ongoing conflict in West Asia, which pressured profit margins. Ciet's management responded by incrementally increasing tyre prices while striving to maintain its market share. EBITDA decreased to 365 crore rupees, a 5.7% decline, and the EBITDA margin narrowed to 8.5% from 11% a year ago. The share price settled at 3,471.10 rupees, roughly 9.3% below the previous close.