Ceat's Strong Profit Growth Amid Rising Costs

Tyre manufacturer Ceat reported a 7% increase in consolidated net profit to Rs 154 crore for Q1 ending June 2024, up from Rs 144 crore in the same period last fiscal. Revenue rose to Rs 3,193 crore, driven by growth in replacement and export segments, despite margin pressures from raw material and freight costs.

Tyre manufacturer Ceat reported a consolidated net profit increase of 7% to Rs 154 crore in the first quarter ending June 2024.

This compares to a net profit of Rs 144 crore in the same period last fiscal.

Ceat's revenue also surged to Rs 3,193 crore from Rs 2,935 crore year-on-year, the company disclosed in a regulatory filing. Ceat MD & CEO Arnab Banerjee highlighted strong gains in the replacement and export segments across all categories during Q1.

Despite facing margin pressures from rising raw material costs and ocean freight, Banerjee stated that strategic price adjustments are helping to mitigate these challenges.

He cited their focus on premiumising passenger car tyres as beginning to show positive results and expressed optimism for sustained volume momentum moving into Q2 and beyond.

Additionally, the company is front-loading its capital expenditure for the year to meet anticipated demand. Ceat shares rose by 1.58% to Rs 2,768.85 apiece on Thursday at the BSE.

(With inputs from agencies.)