CEAT Limited Reports 2,556% Surge in Q2 Net Profit

17 Oct 2023 , 02:32 PM

CEAT Limited witnessed a 7% surge in its stock price, reaching Rs 2,249 in early trading on October 17, following its substantial Q2 financial report. The company reported a remarkable 2,556% increase in net profit, reaching Rs 208 crore, as sales gained momentum and expenses decreased.

For the quarter, CEAT’s consolidated total revenue amounted to Rs 3,053.3 crore, marking a 5% growth compared to the previous year’s figure of Rs 2,894.5 crore. CEAT’s total quarterly expenses decreased by 2.5%, primarily attributed to a significant 14% reduction in input costs.

The company’s EBITDA for the second quarter of the fiscal year stood at Rs 456.1 crore, compared to Rs 203.1 crore reported in the same period the previous year. The EBITDA margin for the reported quarter reached 15%, up from the 7% margin recorded in the corresponding period of the previous fiscal.

CEAT’s MD and CEO, Arnab Banerjee, commented on the results, stating that demand remains stable, with mid-single-digit growth across all three segments: replacement, OEMs, and international business. He attributed improved margins to a focus on product mix and prudent pricing.

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