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.
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.
