CEAT Ltd announced on October 17 that its net profit for the second quarter, which concluded on September 30, 2024, dropped by 41.4% year-on-year, amounting to ₹121.9 crore. In the same quarter of the previous fiscal year, the tyre manufacturer had recorded a net profit of ₹208 crore, according to a regulatory filing. However, the company’s revenue from operations rose by 8.2%, reaching ₹3,304.5 crore compared to ₹3,053.3 crore during the same period last year.
At the operating level, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) fell by 20.6% to ₹362.3 crore, down from ₹456.1 crore in the same quarter of the previous fiscal year. The EBITDA margin decreased to 11% in the current quarter, compared to 14.9% in the corresponding quarter of the prior year.
The board also unanimously approved the issuance of Non-Convertible Debentures (NCDs) or other debt instruments totaling up to ₹500 crore. This issuance can be structured as listed or unlisted, secured or unsecured, and redeemable, and will be conducted via private placement in one or more series or tranches.
Additionally, the Board has empowered the Finance and Banking Committee to oversee the issuance process and has approved the establishment of a wholly-owned subsidiary in Indonesia. CEAT’s capital expenditure for the quarter amounted to ₹208 crore, and the company’s debt rose by ₹238 crore, primarily due to increased working capital needs compared to Q1 FY25 and dividend payments.
Arnab Banerjee, MD and CEO of CEAT Ltd, commented, “This quarter has seen our highest revenue to date, driven mainly by strong performance in our Replacement and International sectors. Despite a notable rise in commodity prices impacting our margins, we implemented selective price increases to mitigate some of the cost pressures. The revenue outlook looks promising as we move into Q3.”
CEAT, one of India’s leading tire manufacturers, has been a key player in the automotive industry since its inception in 1958. A part of the RPG Group, CEAT produces a wide range of tires for various vehicles including two-wheelers, cars, trucks, buses, and heavy-duty vehicles.
Known for its innovation and focus on safety, CEAT has consistently introduced high-performance and durable products that cater to both domestic and international markets. With a strong distribution network and state-of-the-art manufacturing facilities, CEAT continues to strengthen its position in the global tire industry, driving sustainable mobility and customer satisfaction.
