CEAT Reports 46.5% Decline in Q3 Net Profit at ₹97 Crore

Synopsis

CEAT Ltd. reported a drastic 46.5% drop in net profit to ₹97 crore for Q3, despite an 11.4% revenue increase to ₹3,300 crore. The company's EBITDA decreased as well, and management indicated ongoing stability in demand and a robust order pipeline.

Key Takeaways

CEAT Ltd.'s net profit fell to ₹97 crore, a 46.5% decline.
Revenue for the quarter rose by 11.4%, totaling ₹3,300 crore.
EBITDA decreased by 18.3% to ₹341 crore.
Stable demand and a strong order book were noted by management.
Capital expenditure was ₹283 crore, funded internally.

Mumbai, Jan 15 (NationPress) The tyre giant CEAT Ltd. experienced a significant decline in its net profit, which plummeted by nearly half to ₹97 crore during the October-December quarter of the current fiscal year. This drop occurred despite the company achieving an 11.4% rise in revenue, amounting to ₹3,300 crore, as disclosed in an exchange filing on Wednesday.

The RPG Goenka group company reported a 46.5% decrease in net profit for the quarter, with its EBITDA (earnings before interest, taxes, depreciation, and amortization) also falling by 18.3% to ₹341 crore. The EBITDA margin dropped to 10.3% compared to 14.1%.

On a consolidated level, the company’s revenue registered at ₹3,299.9 crore, reflecting an 11.4% year-on-year growth.

CEAT Ltd's Managing Director & CEO Arnab Banerjee commented on the results and future outlook, stating: "We experienced strong double-digit growth compared to last year, largely driven by the replacement segment. Although rising raw material costs have pressured our margins, we have gradually offset some of the increases through selective price hikes during the quarter."

He further added, "Demand remains stable, and our order book is solid across all segments. Raw material prices appear stable for Q4, and we anticipate continued growth momentum."

On a standalone basis, the company reported a revenue of ₹3,291.8 crore, marking an 11.6% increase year-on-year.

Chief Financial Officer Kumar Subbiah explained: "The quarter saw a decline in gross margins owing to higher raw material costs. We managed some of this through price adjustments and cost controls. Our capital expenditure for the quarter was ₹283 crore, fully financed through internal resources, keeping our debt levels stable."

On Wednesday, CEAT shares saw a slight increase of 0.51%, closing at ₹3,057.50 on the BSE, while the benchmark Sensex ended 0.29% lower at 76,724.08 points. The quarterly results were announced after market hours.