Ceat tumbled 4.70% to Rs 1232.65 after the company reported 77% drop in consolidated net profit to Rs 42.3 crore on a 24% rise in net revenue from operations to Rs 2,451.8 crore in Q2 FY22 as compared with Q2 FY21.
Raw material costs jumped by 46% YoY to Rs 1,547 crore during the quarter.
EBITDA declined by 26% to Rs 225.5 crore in Q2 FY22 from Rs 305.8 crore in Q2 FY21. EBITDA margin fell by 626 bps to 9.2% as on 30 September 2021 as against 15.5% as on 30 September 2020.
Profit before tax in Q2 FY22 stood at Rs 57.6 crore, down by 68% from Rs 180.7 crore in Q2 FY21.
Anant Goenka, managing director, CEAT, said, "Overall market demand continues to be robust, despite some lag in Commercial and Farm categories. We witnessed strong growth of 28% compared to preceding quarter on account of good performance in Replacement market, particularly in the passenger segments.
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The rising input cost has impacted our gross margins; however, it has been partially offset by price adjustments over the last quarter.
Kumar SubbMU, CFO of CEAT, said, "During the quarter, we have achieved good top line growth and have managed our costs very well. Our margins are in line with Q1. While the steep increase in input costs continued to put pressure on our margins, there was a slight increase in debt levels as well, largely on account of higher capex and higher inventory."
CEAT, the flagship company of RPG Enterprises, is one of India's leading tyre manufacturers and has a strong presence in global markets. CEAT produces over 15 million tyres a year and offers the widest range of tyres to all segments and manufactures radials for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws.
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