CEAT Sees 16-Fold Jump In Net Profit, Hits Rs 145 Cr In Q1

CEAT posted a nearly 16-fold jump in profit boosted by strong demand and a drop in raw material costs.

The Mumbai-based company's consolidated net profit rose to Rs 145 crore from Rs 9.25 crore a year earlier.

Analysts, on average, expected a profit of Rs 128 crore, according to Refinitiv IBES data.

Revenue rose 4.1 per cent to Rs 2,935 crore, while total expenses fell 2.8 per cent, led by a 14.3 per cent drop in the cost of materials consumed.

Domestic two-wheeler volumes rose by about 10 per cent year-on-year during the quarter due to healthy demand in both urban and rural areas, while the medium and commercial vehicles industry also grew about 6 per cent, said research firm Nuvama. Domestic passenger vehicle segment volumes also grew about 10 per cent.

The domestic tyre market is projected to grow at a CAGR of 7-9 per cent between CY20-24, according to CEAT's annual report.

CEAT in FY2023 reported a 21 per cent rise in revenue, despite facing global headwinds due to the Ukraine crisis as well as the devaluation of the Indian rupee.

Rivals MRF, JK Tyre and Apollo Tyre are yet to report their earnings for the quarter.