CEAT Ltd Share Price – NSE  / BSE

Tyres, Small Cap

Revenue from operations increased 8.22% year on year (YoY) to Rs 3,304.53 crore in the quarter ended 30 September 2024, the growth in revenue was due to healthy YoY volume growth in replacement and International business segments.

Profit before exceptional items and tax dropped by 40.20% YoY to Rs 162.17 crore in the quarter ended 30 September 2024. The company reported exceptional items of Rs 0.03 crore in Q2 FY25.

EBITDA in Q2 FY25 slipped to Rs 367.9 crore as compared to Rs 461.8 crore reported in Q2 FY24. EBITDA margin reduced to 11.1% during the quarter as against 15.1% in the same quarter previous year, margins contracted due to increase in the RM basket.

In Q2 FY25, capital expenditure (capex) amounted to approximately Rs 208 crore.

On half-year basis, the company's consolidated net profit declined 21.71% to Rs 276.04 crore in H1 FY25 as against to Rs 352.61 crore posted in H1 FY24. The revenue from operations increased 8.49% YoY to Rs 6,497.35 crore in H1 FY25.

Commenting on the results as well as the outlook of the business, Arnab Banerjee, MD & CEO, CEAT said, “We are pleased to see that we have successfully carried the momentum from Q1 through Q2. This quarter marks our highest revenue ever, driven largely by robust performances in our Replacement and International sectors. While there’s a significant increase in the commodity prices, our margins got impacted during the quarter. We took selective price increases during the quarter that offset part of the cost impact. The revenue outlook remains positive as we enter Q3.”

Kumar Subbiah, CFO of CEAT, said, “Our standalone revenue of Rs 3,298 crores during the quarter was the highest that we have achieved so far, supported by double digit growth in Replacement & International businesses. We partially mitigated the impact of steep increase in the prices of natural rubber through judicious price increases and cost efficiencies. This quarter also saw our overall debt level rise by Rs 280 crore, driven in part by increased raw material inventory, necessitated due to increase in transit period on imports and the distribution of dividend in Sept to the tune of Rs 120 crore.”

Meanwhile, the company's board has approved the incorporation of a wholly owned subsidiary in the Republic of Indonesia, named CEAT Tyres Indonesia PT or another name approved by the relevant authorities. This new entity will be a related party of CEAT and is proposed to be established with an initial authorized capital equivalent to Rs 5 crore, in accordance with local requirements, in one or more tranches.

CEAT, the flagship company of RPG Enterprises, is one of India's leading tyre manufacturers and has a strong presence in global markets. CEAT produces more than 41 million high-performance tyres, catering to various segments like 2-3 wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles.

The scrip rose 0.42% to Rs 2,901.50 on the BSE.

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CEAT Ltd fell 5.15% today to trade at Rs 2740.45. The BSE Consumer Discretionary index is down 1.16% to quote at 10283.08. The index is down 3.63 % over last one month. Among the other constituents of the index, Stylam Industries Ltd decreased 5.14% and Kamdhenu Ventures Ltd lost 3.76% on the day. The BSE Consumer Discretionary index went up 44.25 % over last one year compared to the 22.91% surge in benchmark SENSEX.

CEAT Ltd has lost 6.82% over last one month compared to 3.63% fall in BSE Consumer Discretionary index and 2.76% drop in the SENSEX. On the BSE, 1792 shares were traded in the counter so far compared with average daily volumes of 10359 shares in the past one month. The stock hit a record high of Rs 3262.2 on 27 Sep 2024. The stock hit a 52-week low of Rs 2060 on 23 Oct 2023.

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Net profit of CEAT declined 41.40% to Rs 121.88 crore in the quarter ended September 2024 as against Rs 208.00 crore during the previous quarter ended September 2023. Sales rose 8.23% to Rs 3304.53 crore in the quarter ended September 2024 as against Rs 3053.32 crore during the previous quarter ended September 2023.

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CEAT will hold a meeting of the Board of Directors of the Company on 17 October 2024.

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