Raw material cost per kilogram increased by 8-10% quarter-on-quarter in Q4FY21 due to a sharp surge in the raw material basket, the Ceat management said in a post-earnings conference call. The management said that raw material cost inflation is expected to further increase by around 10% sequentially in Q1FY22. The rationale for the new capex was to expand market share in the truck and bus radial (TBR) segment and capitalize on the export opportunity. This is a very aggressive capacity ramp-up plan by the company to make further inroads into the TBR segment," said Kotak Institutional Equities in a report on 6 May. Tailwinds of soft commodity prices drove this rally and with raw material cost now turning into a headwind some downside pressure on the stock is likely, analysts said.

Source: Mint May 09, 2021 18:31 UTC