Sensex Trades Marginally Higher; Dow Futures Up By 6 Points

The company's consolidated revenue from operations stood at Rs 22.2 billion in the quarter under review as against Rs 17.6 billion in the year-ago period, a growth of 26%, it added.

Commenting on the company's performance, Ceat's Managing Director Anant Goenka said, "This quarter's growth has been achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments."

The replacement market has been buoyant because of consumer preference in personal mobility and strong rural demand, he added.

Goenka further said, "All our factories are currently operating at a high capacity and we are confident in maintaining strong growth levels over the next few months. There is expected to be some margin pressure in the next quarter due to increasing raw material prices."

During the quarter, the company's continuous effort to judiciously manage cash helped in bringing down debt by Rs 2.6 billion and helped in qualitative improvement in the leverage ratios and the company's balance sheet.

At the time of writing, Ceat share price was trading up by 3.8% on the BSE.

Moving on to news from the finance sector...

IIFL Home Finance Ties Up with Standard Chartered Bank for Co-Lending

Fairfax-backed IIFL Finance on January 19 said its home loan subsidiary IIFL Home Finance and Standard Chartered Bank have entered into a co-lending arrangement for extending credit to micro, small and medium enterprise (MSME) loans (loan against property).

Under this partnership, IIFL Home Finance and the Standard Chartered Bank will co-originate these loans and the IIFL Home Finance will service the customers through the entire loan life-cycle including sourcing, documentation, collection, and loan servicing.

This is one of the first co-lending arrangements in the industry after Reserve Bank India's (RBI) co-lending guidelines were issued. On November 5, 2020, RBI had announced the co-lending scheme for banks and non-banking finance companies (NBFCs) for the priority sector. Under the model, banks are permitted to co-lend with all registered NBFCs (including housing finance companies) based on a prior agreement. NBFCs shall be required to retain a minimum of 20% share of the individual loans on their books.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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