Ceat Q2 net profit declines 42% to Rs 121 crore

Tyre maker Ceat on Thursday said its consolidated profit after tax declined 42 per cent year-on-year to Rs 121 crore for the second quarter ended September 2024 on account of an increase in commodity prices. The company reported a profit after tax of Rs 208 crore in the July-September period of the last fiscal.

Its revenue from operations rose to Rs 3,304 crore for the second quarter compared to Rs 3,053 crore in the year-ago period, Ceat said in a regulatory filing.

On a standalone basis, the company reported a PAT of Rs 136.5 crore against Rs 199 crore in the same period of last fiscal.

The standalone revenue from operations stood at Rs 3,298 crore compared to Rs 3,043 crore a year ago.

"This quarter marks our highest revenue ever, driven largely by robust performances in our replacement and international sectors. While there is a significant increase in the commodity prices, our margins got impacted during the quarter," Ceat MD and CEO Arnab Banerjee stated.
The company took selective price increases during the quarter that offset part of the cost impact, he added.

"The revenue outlook remains positive as we enter Q3," Banerjee said.

Ceat CFO Kumar Subbiah said the quarter also saw the company's overall debt level rise by Rs 280 crore, driven in part by increased raw material inventory, necessitated due to an increase in transit period on imports and the distribution of dividend in September to the tune of Rs 120 crore.