CEAT Ltd share Price Today

CEAT, part of RPG group is one of the India’s most reputable tyre manufacturers established in 1958. It has prominent presence in India as well as in key international markets with 7 manufacturing plants & 51,000+ sales touchpoints.

• FY22 Channel Mix: Auto OEMs: 24%; Replacement: 56%; Exports: 20%  
• FY22 Segment Mix: PV: 18%; CV: 40%; Farm & OHT: 14%; 2W: 28%
• It is presently operating at ~80% capacity utilization levels
• It has ~4,600+ dealers, 380+ CEAT exclusives, presence in >110 countries

• Domestically, company is witnessing healthy demand traction from the OEM’s front with replacement demand being steady in nature. Robust demand is particularly being witnesses in the PV space with chip supply issue easing while steady MoM improvement is seen in the CV space
• On the exports front, demand in Europe & Indonesia is muted amid negative economic scenario. Sri-Lanka on the other hand is witnessing 50-60% decline in volumes with CEAT earning steady margins (unchanged).
• On Margins front company expects Q2FY23 to be on similar lines as Q1FY23 with recovery seen from Q3FY22 onwards. Overall company aims to achieve ~10%-12% operating margins over medium term. Replacement market business remains more lucrative in terms of margin than the OEM.
• Over past 3 years’ company has expensed ~₹3,300 crores out of planned ~₹4,000 capex w.r.t capacity building across Chennai and Ambernath plant. Capex for FY23E is planned at ~₹900 crores while the same for FY24E is seen at ~₹ 700 crore, with peak revenue potential pegged at ₹13,000 crore.
• Company remains committed towards keeping Debt/EBITDA at <3x.

Auto tyres & Rubber products company Ceat announced Q1FY25 results:

Consolidated:

• On a consolidated basis, the company’s revenue closed at Rs 3,192.8 crore.
• EBITDA margin stood at 12.2%, a contraction of 124 bps vs Q4FY24.
• Net profit stood at Rs 154.2 crore.

Standalone:

• On a standalone basis, the company’s revenue stood at Rs 3,168.2 crore.
• EBITDA margin stood at 12.0%, a contraction of 121 bps vs Q4FY24.
• Net profit stood at Rs 149.2 crore.

Commenting on the results as well asthe outlook of the business, Arnab Banerjee, MD & CEO, CEAT, said, "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."

Kumar Subbiah, CFO of CEAT, said, “We witnessed a good growth of ~8.8% in the topline consolidated YoY basis, largely driven by volumes. The operations margin declined during the quarter, primarily due to an increase in commodity costs and higher marketing spends, while we maintained strong controls over operating and manpower costs, ensuring efficient resource utilization and sustained financial health. We incurred a CAPEX of Rs 254 crore during the quarter, in line with our plan, largely from internal accruals.”

Result PDF