Tyre stocks in demand on Ceat's strong Q2 results; MRF, JK Tyre at new high

Ceat said the healthy quarter-on-quarter volume growth was driven by strong OEM demand for festive inventory.

Shares of tyre companies were in demand and rallied up to 11 per cent on the BSE in Tuesday’s intra-day trade after Ceat reported strong earnings for the second quarter of financial year 2023-24 (Q2FY24).

Ceat’s September quarter or Q2FY24 consolidated net profit soared 32-fold to Rs 207.72 crore when compared with Rs 6.40 crore in Q2FY23. The sharp growth was partly aided by a dip in raw material prices. Total income was up 5.5 per cent year-on-year (Y-o-Y) at Rs 3,053.32 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved 227 bps sequentially and 808 bps