CEAT Limited, a leading tyre manufacturer, has reported its financial results for the third quarter of FY25. The company showcased a robust revenue growth of 11.4% year-on-year (YoY), but a significant decline in net profit.
Key Financial Metrics (YoY Comparison):
- Revenue:
- Up by 11.4% to ₹3,299.9 crore from ₹2,963.1 crore.
- Net Profit:
- Down by 46.5% to ₹97.1 crore from ₹181.5 crore.
- EBITDA:
- Declined by 18.3% to ₹340.9 crore from ₹417.5 crore.
- Margins:
- EBITDA margin fell to 10.3% from 14.1%.
Commenting on the results, Arnab Banerjee, MD & CEO, CEAT Limited, stated, “We witnessed a strong year-on-year double digit growth, driven by the replacement segment. While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price increase in select categories during the quarter. The demand continues to remain stable, and our order book pipeline is robust across all segments. Raw material prices look flattish in Q4 and we expect growth momentum to continue.”
Kumar Subbiah, CFO of CEAT, commented, “The gross margins were impacted during the quarter due to the increase in raw material cost. A part of it we managed through price increase and cost controls. Meanwhile, our capex during the quarter was Rs 283 crores, which were fully funded through internal controls and hence, our debt level has remained at similar level.”