Ceat Reports Q2 Profit Dip Despite Record Revenue Surge

Tyre maker Ceat's profit declined 42% to Rs 121 crore in Q2 2024 due to higher commodity prices, despite record revenue. Revenue increased to Rs 3,304 crore, driven by replacement and international markets. Ceat's debt rose by Rs 280 crore, partially due to increased raw material inventory.

Tyre manufacturer Ceat announced on Thursday a 42% decline in its consolidated profit after tax, recording Rs 121 crore for the second quarter ending September 2024. This drop is largely attributed to the rise in commodity prices, despite achieving record revenue levels.

For the same quarter last year, the company had reported a profit after tax of Rs 208 crore. However, revenues from operations rose to Rs 3,304 crore from Rs 3,053 crore year-on-year, according to Ceat's regulatory filing. On a standalone basis, the company's PAT was Rs 136.5 crore, down from Rs 199 crore in the prior year's corresponding period.

Managing Director and CEO Arnab Banerjee highlighted that the robust performance in replacement and international sectors fueled the company's highest-ever revenue. However, increased commodity prices impacted margins despite selective price hikes. CFO Kumar Subbiah noted a Rs 280-crore rise in debt, influenced by higher raw material inventory and dividend distribution.

(With inputs from agencies.)