Ceat Q2 Results: Profit Plummets 42%, Revenue Climbs 8%
The margin narrowed to 11% in the quarter ended September.
(Source: Envato)
Ceat Ltd.'s net profit declined 42% year-on-year in the July–September quarter of the current financial year.
The tyre manufacturer posted a profit of Rs 121.5 crore in the quarter ended Sept. 30. In the year-ago period, the company posted a profit of Rs 207.7 crore, according to an exchange filing on Thursday.
Ceat's revenue during the quarter under review rose 8.2% to Rs 3,304.5 crore from Rs 3,053.3 crore in the corresponding quarter of the previous fiscal.
The earnings before interest, taxes, depreciation and amortisation fell to Rs 362.3 crore, whereas the Ebitda margin contracted to 11% from 14.9%.
Ceat Q2 FY25 Earnings Highlights (Standalone, YoY)
Revenue from operations rose 8.2% to Rs 3,304.5 crore versus Rs 3,053.3 crore.
Net profit decreased 42% to Rs 121.5 crore versus Rs 207.7 crore.
Ebitda fell 21% to Rs 362.3 crore versus Rs 456.1 crore.
Margin narrowed to 11% from 14.9%.
"This quarter marks our highest revenue ever, driven largely by robust performances in our replacement and international sectors," Chief Executive Officer Arnab Banerjee said. "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 the third quarter," the managing director added.
Ceat Share Price
Shares of Ceat fell as much as 2.71% during the day before paring losses to close 1.8% lower at Rs 2,891.75 apiece on the NSE, compared to a 0.89% decline in the benchmark Nifty 50.
The stock has risen 19.67% on a year-to-date basis and 31.76% in the last 12 months.
Thirteen out of the 23 analysts tracking the company have a 'buy' rating on the stock, five suggest 'hold' and as many recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 6%.
