CEAT Reports 2.74% Profit Increase in Q1 of Current Financial Year

The flagship of RPG Group, CEAT, has posted a 2.74% increase in its year-on-year (YoY) profit after tax (PAT) in the first quarter of the 2024-2025 financial year. The profit stood at INR 149.79 crore. The revenue stood at 3192.82 crore, an increase of 8.79% on a YoY basis.

On a sequential basis, the company exhibited a 6.73 per cent increase in revenue, along with PAT, which also rose by 32.04 per cent.

Every quarter, the tyre maker recorded an increase of 6.73% in revenue while the PAT surged by 32.04%.

Arnab Banerjee, managing director and chief executive officer, of CEAT, shared his views on the results. He emphasised CEAT’s good performance in the replacement and exports segments in all categories during this financial year’s first quarter. He also said that there was margin pressure because of a hike in raw material costs as well as shipping charges. CEAT is making strategic price adjustments to overcome these challenges.

CEAT’s CFO, Kumar Subbiah, was of the view that the 8.8% growth in the topline was possible due to an increase in volumes. The operations margin dropped a bit due to the increase in commodity costs and higher marketing spending. The company is doing well in terms of efficiently utilising resources and is in good financial health, he added.

Mumbai-based tyre manufacturer has already made a capital expenditure of about INR 254 crore in the said quarter. This is already in line with CEAT’s business plan.

Moving forward, CEAT’s strategic focus is to improve the premiumisation of passenger tyres in the Indian market. The company is expecting to do well in the coming Q2 as well as beyond. Additionally, CEAT is placing a high priority on early-year capital expenditures in order to successfully predict and satisfy the growing demand in the market sector.