CEAT Ltd Share Price – NSE /  BSE

Tyres, Small Cap

CEAT announced that Ranjit Vasant Pandit (DIN:00782296), Non-Executive Independent Director, has tendered resignation from the Board with effect from 02 March 2025.

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Revenue from operations increased 11.36% year on year (YoY) to Rs 3,299.90 crore against Rs 2,963.1 crore in the corresponding period of the preceding fiscal.

Profit before tax stood at Rs 127.75 crore in Q3 FY25, down 43.86% as against Rs 227.55 crore recorded in Q3 FY24.

EBITDA in Q3 FY25 slipped 18.65% to Rs 346.3 crore as compared to Rs 425.7 crore reported in Q3 FY24. EBITDA margin reduced to 10.5% during the quarter as against 14.4% in the same quarter previous year, margins were impacted by a higher RM basket.

In Q3 FY25, capital expenditure (capex) amounted to approximately Rs 280 crore.

Meanwhile, the company’s board has approved the capex of Rs 400 crore for its plant situated at MIDC, Butibori, Nagpur, Maharashtra. The existing plant currently produces approximately 270 lakh tyres annually, with a capacity utilisation of 90%. It has approved the capacity addition by 30% and it is expected to be added by FY2027-28.

The rationale behind this capacity addition is that the Indian 2/3-wheeler industry is expected to experience strong growth in the short to medium term. This investment aims to progressively increase capacity to meet the anticipated future demand.

Further, the company said that its entity in Indonesia will be incorporated as a “Subsidiary” instead of wholly owned subsidiary pursuant to local regulatory requirements.

On 17 October 2024, the company’s board approved incorporation of a wholly owned subsidiary (WOS) in the Republic of Indonesia, subject to local regulatory requirements.

Arnab Banerjee, MD and CEO of CEAT, said, “We witnessed strong year-on-year double-digit growth, driven by the replacement segment. While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price increases in select categories during the quarter. The demand continues to remain stable, and our order book pipeline is robust across all segments. Raw material prices look flattish in Q4, and we expect growth momentum to continue.

Kumar Subbiah, CFO of CEAT, said, The gross margins were impacted during the quarter due to the increase in raw material cost. We managed part of it through price increases and cost controls. Meanwhile, our capex during the quarter was Rs 283 crore, which was fully funded through internal controls, and hence, our debt level has remained at a similar level.

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

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Net profit of CEAT declined 46.49% to Rs 97.11 crore in the quarter ended December 2024 as against Rs 181.48 crore during the previous quarter ended December 2023. Sales rose 11.36% to Rs 3299.90 crore in the quarter ended December 2024 as against Rs 2963.14 crore during the previous quarter ended December 2023.

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Tyresnmore is, inter alia, engaged in the business of selling automotive tyres, accessories and/or providing services of installing, fitting, wheel balancing and wheel alignment for automotive tyres. Its turnover was Rs 25.63 crore in FY24.

The company will acquire 21,055 equity shares of Tyresnmore. The company's shareholding post this proposed investment remains 100%.

The said transaction will be completed on or before 20 January 2025.

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 tyres manufacturing company’s consolidated net profit fell 41.4% to Rs 121.88 crore in Q2 FY25 as compared to Rs 208 crore posted in Q2 FY24. Revenue from operations increased 8.22% year on year (YoY) to Rs 3,304.53 crore in the quarter ended 30 September 2024.

The counter declined 3.44% to end at Rs 3068.40 on Monday, 6 January 2025.

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