CEAT Ltd Battles Surging Raw Material Costs, Sees Profit Plunge

CEAT Ltd reported a 46.48% decline in net profit for the third quarter, citing high raw material costs. Despite revenue growth driven by the replacement segment, expenses rose significantly. The company remains optimistic with a stable demand and a robust order pipeline, anticipating steady growth going forward.

CEAT Ltd, a prominent tire manufacturer, announced a 46.48% drop in its consolidated net profit for the third quarter ending December 31. This decline is largely attributed to soaring raw material costs.

The company recorded a net profit of Rs 97.03 crore, a sharp fall from Rs 181.28 crore in the same period last year, according to a regulatory filing. However, CEAT Ltd's consolidated revenue rose to Rs 3,299.9 crore, up from Rs 2,963.14 crore in the previous year.

Despite the pressure from increased expenses, particularly in materials consumed, the company has managed to pass on some cost increases through selective price hikes. CEO Arnab Banerjee noted the robust performance of the replacement segment as a key driver for revenue growth. Looking ahead, Banerjee remains positive about the demand stability and expects continued growth momentum as raw material prices appear to stabilize.

(With inputs from agencies.)