Expect double-digit growth in replacement, international business despite rubber price hike: CEAT
CEAT Ltd expects double-digit growth in replacement and international business this fiscal despite a high natural rubber price forcing it to hike product rates, according to its MD and CEO Arnab Banerjee. The company, which has taken price hikes of 2-2.5 per cent in the replacement segment since May, expects another round of increase towards the end of July but is betting on robust demand across categories and turnaround of the rural market to drive growth.
«We would like to think that unless there are some unforeseen headwinds, the growth will be steady and positive. We would like to maintain double-digit growth in the replacement segment and international business,» Banerjee told PTI.
As for the company's sales to OEM, he said, «We see growth potential much ahead of 3 per cent in the passenger segment for CEAT on the basis of the model pipeline».
In the first quarter of the ongoing fiscal, the company had posted good topline growth as rural demand has come back while premiumisation strategy and higher margin tyres did well, he said, adding that «commercial vehicle and two-wheeler (segments) have come back strongly».
Ceat Q1 Results: Net profit rises 7% YoY to Rs 154 crore; revenue increases to Rs 3,193 crore
CEAT posted consolidated revenue from operations at Rs 3,192.82 crore in the first quarter against Rs 2,935.17 crore in the year-ago period.
Asked about the impact of the rise in natural rubber prices, he acknowledged that it has affected margins.
«Natural rubber prices are at a
