CEAT Q1 results: Profit rises 2.74% to Rs 149.79 cr, revenue up 8.79%

RPG Group-owned tyre company, CEAT, posted a 2.74 per cent year-on-year (YoY) rise in profit after tax (PAT) during the first quarter of the financial year 2024-25, concluded on June 30, reaching Rs 149.79 crore. CEAT's revenue from operations rose by 8.79 per cent YoY to Rs 3,192.82 crore.

On a sequential basis, the company exhibited a 6.73 per cent increase in revenue, along with PAT, which also rose by 32.04 per cent.

Speaking on the results, Arnab Banerjee, managing director and chief executive officer, CEAT, said, "We are encouraged by the strong growth we’ve had in the replacement and export segments across all categories during the quarter. Despite facing margin pressure from significant increases in raw material costs and ocean freight, we are actively mitigating these challenges through strategic price adjustments.”

Kumar Subbiah, chief financial officer of CEAT, said, “We witnessed good growth of ~8.8% in the topline on a consolidated Y-o-Y basis, largely driven by volumes. The operations margin declined during the quarter, primarily due to an increase in commodity costs and higher marketing spends, while we maintained strong controls over operating and manpower costs, ensuring efficient resource utilisation and sustained financial health.”

CEAT has incurred a capital expenditure of Rs 254 crore during the quarter, which is in line with their plan.

CEAT's strategic focus would be to enhance the premiumisation of passenger car tyres as they have started to deliver promising results. Moving forward, they project ongoing momentum in volume growth throughout Q2 and beyond. CEAT is also prioritising early-year capital expenditures to effectively anticipate and meet the increasing demand in the market.

The results came after market hours on the same day, CEAT's share price rose by 1.58 per cent, ending the day's trade at Rs 2,768.85 apiece on the BSE.