Company sees strong growth in Replacement and International sectors amid rising commodity prices
Mumbai: CEAT Limited, part of the RPG Group, reported its highest-ever consolidated revenue of Rs. 3,304.5 crore for Q2 FY24-25, reflecting a 3.5% growth quarter-on-quarter and an 8.2% increase year-on-year. The company faced challenges with rising commodity costs, particularly natural rubber, leading to an EBITDA margin contraction to 11.1%, a drop of 102 basis points compared to Q1 FY24-25.
Net profit for the quarter stood at Rs. 121.5 crore. CEAT’s Managing Director & CEO, Arnab Banerjee, commented on the results: “We’re thrilled to see our growth momentum continue from Q1 into Q2, with Replacement and International sectors driving this success. While higher commodity prices impacted our margins, strategic price increases helped mitigate some of the cost pressures. Our revenue outlook remains strong as we approach Q3.”
On a standalone basis, CEAT’s revenue reached Rs. 3,298.1 crore, also a record high, with an EBITDA margin contraction of 93 basis points. Net profit for standalone operations was Rs. 136.5 crore.
Kumar Subbiah, CFO of CEAT Limited, noted, “The double-digit growth in our Replacement and International businesses contributed to our record standalone revenue. While we faced increased raw material costs, we managed to balance this with selective price hikes and operational efficiencies. However, our debt rose by Rs. 280 crore, partly due to higher inventory levels and the payment of Rs. 120 crore in dividends.”
CEAT remains optimistic about its growth trajectory for the remainder of the financial year, buoyed by strong market demand and careful cost management.
