homeearnings NewsCEAT Q2 Results | Net profit shoots up to ₹208 crore on 'stable demand, judicious pricing'
CEAT Q2 Results | Net profit shoots up to ₹208 crore on 'stable demand, judicious pricing'
Tyre maker CEAT Ltd on Monday (October 16) reported a 2,556% YoY jump in consolidated net profit. The results came after the close of the market hours. Shares of CEAT Ltd ended at ₹2,101.30, down by ₹36.30, or 1.70%, on the BSE.
Tyre maker CEAT Ltd on Monday (October 16) reported a 2,556% year-on-year (YoY) jump in consolidated net profit at ₹208 crore for the second quarter that ended September 30, 2023, as sales picked up and expenses dropped.
In the corresponding quarter last year, CEAT Ltd posted a net profit of ₹8 crore, the company said in a regulatory filing. In the first quarter of this fiscal the tyre company reported a net profit of Rs 144.6 crore.
Total quarterly expenses were down 2.5%, led by a 13.6% drop in input costs.
In the quarter, consolidated total revenue stood at ₹3,053.3 crore, up 5.5% against ₹2,894.5 crore in the corresponding period of the preceding fiscal.
At the operating level, the EBITDA stood at ₹456.1 crore in the second quarter of this fiscal over ₹203.1 crore in the corresponding period in the previous fiscal.
The EBITDA margin stood at 14.9% in the reporting quarter compared to 7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Commenting on the results as well as the outlook of the business, Arnab Banerjee, MD & CEO, CEAT Limited, said, “The demand continues to be stable, and we are witnessing mid-single-digit growth in our topline across all three segments — replacement, OEMs, and international business. Our focus on product mix and judicious pricing helped improve margins during the quarter."
On a standalone basis, the company's revenue stood at ₹3,043 crore and EBITDA margin stood at 15%, an expansion of 180 bps vs Q1 FY23-24. Net profit stood at ₹199 crore.
Arnab Banerjee, MD and CEO of CEAT, said, "The demand continues to be stable, and we are witnessing mid-single-digit growth in our topline across all three segments – replacement, OEMs, and international business. Our focus on product mix and judicious pricing helped improve margins during the quarter."
Kumar Subbiah, CFO of CEAT said, "For the fifth quarter in succession, we have improved our margins quarter-on-quarter. Our consistent efforts in improving cost efficiencies and mix are yielding benefits. EBITDA Margin has crossed ₹400 crore for the first time in a quarter leading to healthy improvement in our net profits.
We have also managed to bring our standalone debt down by ₹103 crore through efficient management of cash flows and improved operating performance."
The results came after the close of the market hours. Shares of CEAT Ltd ended at ₹2,101.30, down by ₹36.30, or 1.70%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Oct 16, 2023 8:00 PM IST
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