CEAT ups tyre prices,see better margins as rubber drops

Ceat Ltd,India’s fourth largest tyre maker,last week raised prices of tyres 2-2.5 percent across categories,and expects margins to improve from September quarter due to a fall in prices of rubber,key raw material,a senior official said.

Rubber prices have come down from its peak. It should benefit us from Q2,but it will reflect clearly in the Q3 as we keep inventory of 2-3 weeks,Anant Goenka,deputy managing director,told Reuters in an interview on Tuesday. However,the company has no plans to raise tyre prices further. Natural rubber makes up more than 40 percent of the cost of a tyre and its prices have fallen 13 percent from its peak of 24,300 rupees per 100 kg struck on April 5.