CEAT Limited announced its unaudited financial results for the first quarter ending 30 June 2024, highlighting a steady growth trajectory despite facing challenges from rising raw material costs and increased ocean freight. The company reported a consolidated revenue of INR 3,192.8 crore, reflecting a quarter-on-quarter growth of 6.7% and a year-on-year increase of 8.8%. The consolidated EBITDA for the quarter stood at INR 388.2 crore, with an operating margin of 12.2%.
CEAT's strategic emphasis on the premiumisation of its product range, particularly in the passenger car tyre segment, has started showing promising results. The company has managed to offset some of the cost pressures through price adjustments, thereby protecting its margins to a significant extent.
On a standalone basis, CEAT Limited's revenue for Q1 stood at INR 3,168.2 crore, with an EBITDA margin of 12.0%, reflecting a slight contraction from the previous quarter. The net profit for the standalone business was reported at INR 149.2 crore. Kumar Subbiah, CFO of CEAT Limited, added, 'We witnessed a robust growth of approximately 8.8% in the topline on a year-on-year basis, primarily driven by volumes. Although the operating margin declined due to increased commodity costs and higher marketing spends, we maintained strong controls over operating and manpower costs, ensuring efficient resource utilisation and sustained financial health. We incurred a capital expenditure of INR 254 crore during the quarter, largely funded through internal accruals.'
Arnab Banerjee, Managing Director and CEO of CEAT Limited, stated 'Despite margin pressures from significant increases in raw material costs and ocean freight, we are mitigating these challenges through strategic price adjustments. Our focus on premiumising 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 capital expenditure this year to ensure we are well-prepared to meet rising demand.'
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