CEAT Q2FY25 results: Profit skids 41.4% to Rs 121.8 cr, revenue up 8.2%

RPG Group-owned tyre company CEAT on Thursday posted a 41.4 per cent decline in profit after tax (PAT) for the second quarter (Q2) of 2024-25 (FY25), while its consolidated revenue from operations grew by 8.23 per cent during the period. The consolidated PAT in Q2 FY25 stood at Rs 121.88 crore, while the revenue from operations came in at Rs 3,304.53 crore.

The revenue from operations grew on the back of strong performance in the replacement and international sectors.

Sequentially, the revenue from operations grew by 3.49 per cent, whereas PAT fell by 20.94 per cent.

Commenting on the results, Arnab Banerjee, MD & CEO, CEAT, said, “This quarter marks our highest revenue ever, driven largely by robust performances in our Replacement and International sectors. While there’s a significant increase in commodity prices, our margins got impacted during the quarter.”

CEAT took selective price increases during the quarter that offset part of the cost impact caused by higher rubber prices. The company remains optimistic for Q3.

Commenting on the same, Kumar Subbiah, CFO of CEAT, said, “This quarter we partially mitigated the impact of a steep increase in the prices of natural rubber through judicious price increases and cost efficiencies. This quarter also saw our overall debt level rise by Rs 280 crore, driven in part by increased raw material inventory, necessitated due to an increase in transit period on imports and the distribution of dividend in September to the tune of Rs 120 crore.”

The stock fell 1.78 per cent to Rs 2,889.30 apiece on Thursday.