Tyremaker Ceat reported a 7 per cent increase in net profit with ₹154 crore for the quarter that ended on June 30 as against ₹144 reported during the same quarter last year.
The company reported a 42.5 per cent increase in profit with ₹108 crore registered in the March quarter.
The Mumbai-headquartered company’s revenue from operation grew 8.75 per cent with ₹3,192 crore in June (₹2,935 crore). The company saw a 6.72 per cent increase in revenue from the March quarter with ₹2,991 crore.
“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 premiumising 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,” said Arnab Banerjee, MD and CEO, Ceat.
“We witnessed a good growth of about 8.8 per cent in the topline consolidated year-on-year basis, largely driven by volumes. The operations margin declined during the quarter, primarily due to an increase in commodity costs and higher marketing spending, while we maintained strong controls over operating and manpower costs, ensuring efficient resource utilisation and sustained financial health. We incurred a capex of ₹254 crore during the quarter, in line with our plan, largely from internal accruals,” said Kumar Subbiah, CFO of Ceat.