Tyre manufacturer CEAT on Thursday reported a mixed set of Q1FY25 earnings. The company’s net profit grew 6.6% on a YoY basis to Rs 154.1 crore against Rs 144.6 crore posted in the same period last year. The company’s revenue also grew 8.8% on a YoY basis to Rs 3,192.8 crore versus Rs 2,935.2 crore reported during the same period last year.
EBITDA for the company however declined 1% to Rs 382.9 crore while margins too compressed 120 bps on a YoY basis to 12% in the April-June quarter.
“We are encouraged by the strong growth we’ve had in the replacement and export segments across all categories during the quarter. Despite facing margin pressure from significant increases in raw material costs and ocean freight, we are actively mitigating these challenges through strategic price adjustments. Our strategic focus on premiumizing passenger car tyres has begun to yield positive results. Looking ahead, we anticipate continued momentum in volume throughout Q2 and beyond. Additionally, we are front-loading our CAPEX this year to ensure we are well-prepared to meet rising demand,” said Arnab Banerjee, MD & CEO of the company.
