CEAT Q2 net profit falls 40% to Rs 112 crore on high input costs
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓CEAT reported a 40% drop in Q2 net profit to Rs 112 crore as high input costs hit margins.
- ✓Revenue rose 26.2% to Rs 4,762 crore.
- ✓CFO Kumar Subbiah said, "Cost pressures are expected to persist into the December quarter as commodity prices remain elevated." The company plans price increases.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Financial Express
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Revenue from operations rose 26.2% to ₹4,762 crore from ₹3,773 crore in the year-ago quarter. However, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 9.1% to ₹457 crore from ₹503 crore, while the EBITDA margin contracted to 9.6% from 13.3%.
Arnab Banerjee, MD, CEO said, "The company sustained double-digit revenue growth, supported by momentum in premium segments across its business units. However, elevated raw material costs due to the West Asia crisis continued to pose challenges. The company responded through tighter cost controls and disciplined execution."
CEAT expects to sustain its growth momentum in the second half of the financial year. Banerjee said the company would aim to deliver double-digit growth again, alongside further price increases.
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