CEAT Q1 profit jumps multi-fold at Rs 144.61 crore on high demand, revenue up 4.1%

financialexpress.com:

Tyre manufacturer CEAT Ltd posted a fiscal first quarter profit jump of 1463.4 per cent or almost a 15-fold increase at Rs 144.61 crore as against Rs 9.25 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 2935.17 crore, up 4.1 per cent as against Rs 2818.38 crore in the first quarter of financial years 2022-23. The company EBITDA stood at Rs 387.2 crore. CEAT recorded a total income for the quarter at Rs 2938.42 crore, up 4.2 per cent as against Rs 2821.14 crore a year earlier. However, the total expenses for the quarter stood at Rs 2739.14 crore, down 2.8 per cent from Rs 2816.66 crore during Q1FY23. 

CEAT posted a healthy QoQ volume growth in replacement driven by seasonal uptick in passenger segments. It said that the exports continued to recover and remain the fastest growing segment on-quarter basis. In terms of OEM volumes, CEAT witnessed a minor sequential drop due to portfolio rejig in PC/UV and high base effect. It also added that there was a moderate decline in blended realisations led by OEM price adjustments.

“Replacement and International business are looking good with good product – market fit. Our product performance continues to get accepted as superior across key geographies. Better sweating of assets, improved efficiencies through digital interventions and otherwise, shall improve margins going forward,” said Arnab Banerjee, MD & CEO, CEAT Limited.

Meanwhile, on a standalone basis, CEAT revenue stood at Rs 2,921 crore and EBITDA margin stood at 13.2 per cent and net profit during the quarter was at Rs 159 crore.

“During the quarter, we have focused and optimized on operational efficiencies. Our improved product mix and procurement efficiencies have helped improve