CEAT Ltd reported a 7.1% increase in net profit for the first quarter of FY25. The net profit rose to Rs 154.2 crore from Rs 144 crore in the same quarter last year. This growth came despite a drop in operating profit due to a one-time gain from a reversal of charges related to license purchases and higher income from joint ventures and other sources.
Revenue from operations increased by 8.8% to Rs 3,192.8 crore, driven by strong demand in the replacement market and exports. CEAT earns 53% of its revenue from the replacement market, 28% from the OEM market, and 19% from exports.
CEAT’s EBITDA, or operating profit, dropped by 1% to Rs 382.8 crore, with the EBITDA margin shrinking to 12% from 13.2% last year. The decline was due to higher commodity prices and marketing expenses, leading to a 9.7% rise in total expenses.
MD and CEO Arnab Banerjee acknowledged the margin pressures from raw material costs and ocean freight, stating that the company is managing these through strategic price adjustments. CFO Kumar Subbiah noted that the company maintained strong controls over operating and manpower costs.
CEAT recorded a one-time gain of Rs 7.46 crore, including a reversal of Rs 11.5 crore related to earlier license purchases and a Rs 4 crore expense from a voluntary retirement scheme. Additionally, the net profit was boosted by Rs 5.3 crore from joint ventures and a doubling of other income to Rs 6.2 crore.
CEAT Ltd known for producing a wide range of tires for automobiles, including cars, trucks, two-wheelers, and buses. Established in 1958, the company has built a strong reputation for quality and innovation in the tire industry. CEAT focuses on delivering durable and high-performance tires, leveraging advanced technology and rigorous testing to meet diverse customer needs.
With a significant market presence in India and expanding global operations, CEAT continues to drive growth through strategic investments in manufacturing facilities and research and development, aiming to strengthen its position in the competitive tire market.
