Ceat Q1 2024 financial results

Ceat Limited, a subsidiary of India’s RPG Group, has reported its unaudited results for the first quarter of its 2024 financial year, the three months ending on 30 June 2023.

On a consolidated basis, the company’s revenue closed at Rs 29.35 billion (£277.7 million, US$358.1 million), up 4.1 per cent year-on-year. EBITA was up 124.5 per cent year-on-year to Rs 3.85 billion (£36.4 million, $47.0 million), with an EBITA margin of 13.1 per cent (Q1 2023: 6.1%). Net profit stood at Rs 1.44 billion (£13.6 million, $17.6 million), compared with Rs 90 million in Q1 2023, a quarter in which rising raw material prices strongly impacted upon the company’s margins.

Revenue when measured on a standalone basis amounted to Rs 29.21 billion (£276.4 million, $356.4 million) with an EBITDA margin of 13.2 per cent. Net profit stood at Rs. 1.59 million (£15.0 million, $19.4 million).

“Replacement and International business are looking good with good product – market fit,” comments Arnab Banerjee, managing director and chief executive officer of Ceat Limited. “Our product performance continues to get accepted as superior across key geographies. Better sweating of assets, improved efficiencies through digital interventions and otherwise, shall improve margins going forward.”

Kumar Subbiah, the tyre maker’s chief financial officer, adds: “During the quarter, we have focused and optimised on operational efficiencies. Our improved product mix and procurement efficiencies have helped improve our gross margins leading to an improvement in our overall margins both sequentially and year-on-year. Our continuous focus on cash has helped us reduce our debt for the second consecutive quarter, and we have seen a reduction in our standalone gross debt by Rs. 97 crore (Rs 970 million, £9.2 million, $11.8 million).”

Read Ceat’s Q1 2024 investor presentation here.