Ceat's Q1 2024 Performance Surges with 7% Profit Growth

Tyre manufacturer Ceat reported a 7% increase in its consolidated net profit to Rs 154 crore for the first quarter ending June 2024. Revenue rose to Rs 3,193 crore, supported by strong performance in replacement and export segments. The company is addressing margin pressures through strategic pricing and front-loading capex to meet rising demand.

Tyre maker Ceat on Thursday announced a consolidated net profit increase of 7% to Rs 154 crore for the first quarter ending June 2024.

Compared to the Rs 144 crore net profit posted in the same period last fiscal year, the growth reflects robust performance.

Revenue for the quarter rose to Rs 3,193 crore from Rs 2,935 crore a year ago, the company revealed in a regulatory filing.

Ceat MD & CEO Arnab Banerjee attributed the growth to strong performances in replacement and export segments across all categories despite facing significant margin pressures from raw material costs and ocean freight.

The company is mitigating these challenges through strategic price adjustments.

Banerjee highlighted the strategic focus on premiumising passenger car tyres which has started to yield positive results.

He anticipates continued momentum in volume throughout Q2 and beyond.

Ceat is also front-loading its capex to be well-prepared for rising demand.

Shares of Ceat closed 1.58% higher at Rs 2,768.85 apiece on the BSE on Thursday.

(With inputs from agencies.)