 "CEAT Tyres")
CEAT Ltd, one of India's leading tyre manufacturers and an RPG Group company, has posted over 15-fold increase in consolidated net profit during the first quarter of the financial year 2023-24 to Rs 144 crore as compared to Rs 8.68 crore during the same period last financial year. The rise in net profit was mainly owing to a dip in expenses, with raw material seeing itself seeing a 14 per cent decline, and a rise in revenue during the period.
During the Q1 of FY24, the company’s total income was also seen up by 4 per cent to Rs 2,938 crore against Rs 2,821 crore during the Q1 of FY23. In the April to June quarter this financial year, the company’s cost of materials consumed declined to Rs 2,037 crore in Q1 this year from Rs 1,746 crore during the April to June quarter of FY23. Similarly, its total expenses also decreased by 3 per cent to Rs 2,817 crore during the period. Its EBITDA margin stood at 13.1 per cent during the quarter.
“Last year's Q1 raw material price situation was completely different. There was at least an 11 per cent dip in key raw material prices itself compared to last year,” said Arnab Banerjee, managing director and chief executive officer, CEAT.
“Replacement and International business are looking good with good product - market fit. 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,” he added. On a standalone basis, the company’s revenue stood at Rs. 2,921 crore and EBITDA margin stood at 13.2 per cent.
“During the quarter, we have focused and optimized 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,” said Kumar Subbiah, chief financial officer of CEAT.
