CEAT Ltd, one of India's leading tyre manufacturers, on July 18 reported a seven percent rise in its consolidated net profit at Rs 154.18 crore in the quarter ending June 30, 2024, compared to Rs 144.01 crore in the corresponding period last year.
The RPG Group company’s consolidated revenue from operations during the first quarter of the current fiscal stood at Rs 3,192.82 crore, registering a rise of 8.8 percent compared to Rs 2,935.17 crore in the year-ago period.
Arnab Banerjee, MD & CEO, CEAT Limited said, "We are encouraged by the strong growth we’ve had in the replacement and export segments across all categories during the quarter. Despite facing margin pressure from significant increases in raw material costs and ocean freight, we are actively mitigating these challenges through strategic price adjustments."
The homegrown tyremaker’s total expenses were higher at Rs 3,003.56 crore as compared to Rs 2,739.14 crore in the corresponding quarter a year ago. The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter stood at Rs 388.2 crore crore. Its operating margin stood at 12.2 percent.
"Our strategic focus on premiumising passenger car tyres has begun to yield positive results. Looking ahead, we anticipate continued momentum in volume throughout Q2 and beyond. Additionally, we are front-loading our capex this year to ensure we are well-prepared to meet rising demand," added Banerjee.
On a standalone basis, the company’s revenue stood at Rs 3,168.2 crore and EBITDA margin stood at 12.0 percent, a contraction of 121 bps vs Q4 FY23-24. Its standalone net profit stood at Rs 149.2crore during Q1 FY25.
Kumar Subbiah, CFO of CEAT Limited, stated that the company witnessed a growth of ~8.8 percent in the topline consolidated Y-O-Y basis, largely driven by volumes.
"The operations margin declined during the quarter, primarily due to an increase in commodity costs and higher marketing spends, while we maintained strong controls over operating and manpower costs, ensuring efficient resource utilization and sustained financial health," noted Subbiah.
He also revealed that the company incurred a capex of Rs254 crore during the quarter largely from internal accruals.
On July 18, the company’s share price ended at 2,786.00 on the NSE, up by 2.16 percent from the previous day’s close.
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