Ceat reports weak performance in Q3FY22
News: Ceat reported a dismal performance in Q3FY22. On a standalone basis. gross margin decline for the quarter were at 310 bps QoQ with consequent EBITDA margins at 5.5%, down 340 bps QoQ. Net sales for the quarter were at Rs.2,406 crore, down 1.1% QoQ with absolute EBITDA placed at Rs.132 crore, down 39% QoQ. The company reported loss at the PAT level amounting to ~Rs.15 crore
Views: Gross margin decline for the quarter on a sequential basis came in much higher than anticipated with our expectations pegged at <100 bps QoQ decline for domestic operations. We expect Ceat’s results to have negative rub-off effect on our coverage tyre players namely Apollo Tyres and JK Tyres.