Mumbai, India –
CEAT Limited (CIN No: L25100MH1958PLC011041), a flagship company of the RPG Group, reported impressive financial results for the third quarter ending December 31, 2024. The company achieved consolidated revenue of ₹3,299.9 crore, marking an 11.4% year-on-year (Y-o-Y) increase, driven primarily by strong performance in the replacement segment.
The company’s EBITDA margin stood at 10.5%, with a net profit of ₹97.0 crore, reflecting its ability to navigate challenging market conditions effectively. On a standalone basis, revenue was ₹3,291.8 crore, with EBITDA margin at 10.4% and net profit reported at ₹96.0 crore.
Key Highlights:
- Revenue Growth: Consolidated revenue increased by 11.4% Y-o-Y to ₹3,299.9 crore.
- Profitability: Net profit reached ₹97.0 crore, reflecting steady operational efficiencies despite cost pressures.
- Capex: Capital expenditure during the quarter was ₹283 crore, fully funded through internal accruals.
Leadership Insights:
Arnab Banerjee, MD & CEO of CEAT Limited, attributed the robust growth to the replacement segment’s strong demand, stating, “We witnessed a strong year-on-year double-digit growth, driven by the replacement segment. While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price adjustments in select categories during the quarter. The demand remains stable, and our robust order book pipeline ensures momentum across all segments.”
He also highlighted that raw material costs are expected to remain flat in Q4 FY24-25, offering optimism for sustained growth.
Echoing the sentiment, Kumar Subbiah, CFO of CEAT Limited, noted, “The gross margins were impacted during the quarter due to the increase in raw material costs. However, a combination of price adjustments and stringent cost controls helped mitigate the impact. Importantly, our capex of ₹283 crore during the quarter was fully funded internally, maintaining debt levels at consistent levels.”
Looking Ahead:
CEAT remains optimistic about continuing its growth trajectory, supported by stable demand, a strong order book, and flat raw material prices in the coming quarter. The company is strategically focused on enhancing profitability through operational efficiencies and targeted price revisions.
This strong performance in Q3 FY24-25 underscores CEAT Limited’s resilience and adaptability amidst a volatile cost environment, bolstering its position as a key player in the Indian tire industry.
