Ceat: Q3 2022 financial results

Ceat Limited, an RPG Group company, reports consolidated revenue of Rs 27.27 billion (£269.9 million) for the three months to 31 December 2022, the third quarter of its financial year. This result represents a year-on-year increase of 13.0 per cent. EBITDA rose 61.8 per cent year-on-year to Rs 23.14 billion (£229.0 million), with an EBITDA margin of 8.5 per cent, up 256 bps compared with the same period of last year. Net profit stood at Rs 348 million (£3.4 million).

“Our margins continue to improve as a result of the cooling commodity prices,” comments Anant Goenka, managing director of Ceat Limited. “Growth is led by domestic demand as we remain cautious about international markets that are getting impacted by recessionary trends.

“Going forward, our outlook for Q4 is positive,” Goenka continues. “We have the capacities available to cater to a growing market demand. Our factory at Halol has recently been certified as a Lighthouse Factory by the World Economic Forum at Davos for application of Industry 4.0 technologies. This is a testament to our digital capabilities in driving manufacturing & supply chain efficiencies, better product quality and customer service.”

Standalone results

On a standalone basis, the Company’s revenue stood at Rs 27.11 billion (£268.3 million) and EBITDA margin stood at 8.7 per cent, up 323 bps year-on-year. Net profit amounted to Rs 420 million (£4.2 million)

“Our standalone EBITDA margins improved during the quarter by 160 bps over the previous quarter largely due to lower input costs and tight control over operating expenses,” says Kumar Subbiah, chief financial officer of CEAT Limited. “We brought down our overall inventories by Rs 280 crore (Rs 2.8 billion, £27.7 million), which helped in bringing efficiencies in operating cashflows and minimising our borrowings. We intend to maintain our capex for the year at around Rs 900 crore (Rs 9 billion, £89.1 million) in line with our annual plan. With the correction in commodity costs, the margin outlook is positive for the next quarter.”