AgencyCeat on Wednesday posted a consolidated loss of Rs 348.8 million. For the first quarter of the current fiscal, revenues declined by more than 36% to Rs 11.23 billion.

Mumbai: Tire manufacturer Ltd expects a significant increase in demand for replacement tires in the second quarter of the current fiscal. Anant Goenka, Managing Director, RPG Group of Companies, said6 Demand in this sector surged during the month. The figure is at-19 level and the coming quarters are likely to make up for6 the loss of sales due to the COVID-19 monthly quarterly blockade.

“The market for higher-margin alternatives has returned to normal levels, if not above normal,” he said.

Ceat derives 60 percent of its sales from alternative markets, with OEM sales accounting for 27 percent and exports accounting for about 13 percent.

Goenka said, “We are in a much better position than we expected. April looked worse,” Goenka said.

Most of the company’s six production sites have resumed full production. However, Goenka despite higher than expected demand, the situation remains uncertain due to Covid-19, as infections increase. The rest of the year is difficult to predict, he said.

The government’s recent move to include imported goods such as tires in the restricted category may also spur domestic manufacturers. Imported tires account for 6 to 10 percent of the Rs 600 billion domestic tire market, which could halve the market, Goenka said. But he said it was difficult to isolate the impact in today’s uncertain market.

Goenka said that Ceat plans capital expenditure has been reduced by 30%. “We will continue to be cautious. When the market recovers, we will consider investments. It’s too early for investment to return to normal levels.”

Ceat on Wednesday reported a consolidated loss of Rs 348 crore for the first quarter of the current fiscal, with revenues falling by more than 36 percent. 1123 crore. The company said its revenue for the last fiscal was 1.07644 Profit of Rs 82.66 lakh crore crore crore.

The company’s shares closed at Rs 847.75 per share on the Bombay Stock Exchange on Thursday, down 2.27%.