CEAT, a tyre company has reported 167% growth in profit for the quarter commencing in December. This was because of the growth spurt in the industry. The back of a good recovery in supply to automakers and replacement demand has allowed their progress.
The standalone profit was of Rs 128 crore for the quarter in comparison Rs 48 crore during the same period last year. Revenue has increased by 26% to Rs 2,213 crore.
EBITDA which earnings before interest, tax, depreciation and amortization, has risen by 78% to Rs 326 crore, while EBITDA margin improved by 430 basis points to 14.7%. One basis point is 0.01%.
CEAT Ltd. hit a 52-week high on 19th January 2021 with their stock price being Rs 1,273.65.
The company has incurred an expenditure of Rs 12.30 crore towards Voluntary Retirement Scheme (VRS) for its employees during the quarter.
Motilal Oswal has a buy call for CEAT with a target price of Rs 1,325.
