Latest news with #CeatLtd
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Business Standard
20-07-2025
- Automotive
- Business Standard
Expect double-digit growth in FY26, rural demand to drive sales: Ceat CEO
Tyre maker Ceat Ltd expects to maintain a double-digit growth this fiscal with domestic replacement segment, specially from rural markets, to drive sales while direct supplies to automobile makers are likely to be muted, according to company MD & CEO Arnab Banerjee. The company is also waiting and watching the tariff situation in the US, a big growth market but not a significant one right now for it, to decide its future course of expansion in the country, he told PTI. "We have started with a double-digit growth in Q1, which we have maintained last year also. We expect to maintain or accelerate that over the next two to three quarters," he said when asked for the outlook of the remainder of the fiscal. In the first quarter ended June 30, 2025 the company's revenue stood at Rs 3,529.4 crore, up 10.5 per cent year-on-year. As for the growth drivers, Banerjee said the two-wheeler replacement segment in the rural market is expected to do well across segments. "On the replacement side, rural demand should be good because monsoons have been good. So we expect rural demand to be robust. Then adoption of electric vehicles specially scooters etc is going strong," he said. Banerjee further said, "There will be some demand softness in the passenger cars side, which is dependent on larger towns but we are seeing a big shift there also from smaller size tyres to larger size tyres. Value growth could be there, margin growth could be there. In terms of the number of tyres, growth may not be that robust." Truck and bus radial tyres in the commercial vehicles segment will continue "to do decent", he noted. However, on the direct supplies to automakers, he said, "OEM growth in two-wheelers has slowed down and passenger vehicle is low single digit. It is going to continue like that unless there are some big launches which create excitement in the market." Medium and heavy commercial vehicles (M&HCV) could also slow down once the pre-buying before AC cabin regulation comes in (from October 1 this year), he said, adding "it may slow down a little bit. So, on the OEM side, slowdown is expected". When asked about the impact of Trump tariff uncertainty, Banerjee said, "The impact on our international business is low because our stakes are low in the US. Materially it is not significant but it is a big growth market for us." The US market accounts for about 3 per cent of the company's total sales. "We are waiting and watching...," he said, adding Ceat would wait for the tariff situation to settle down to plan its future growth strategy in the US. Asked if the company would look at local manufacturing in the US, he said, "We have not thought that far as yet but we are just waiting for the tariff situation (to settle down) and how the pricing will move in the US." Noting that there will be inflation on imported tyres, Banerjee said the US is hugely dependent on imported tyre, not only from India but from various countries. About the European market, he said Q1 was not good as distributors and channels were not stocking due to global geopolitical uncertainty. "However, for Q2 we have good order visibility, more of a seasonal offtake...Q2 order base is very good. Seasonal offtake is very good and if we execute it well, it will be good and from there we will see what happens in Q3 and Q4," Banerjee noted.
Time of India
18-07-2025
- Business
- Time of India
Ceat shares in focus after reporting 9% YoY decline in Q1 PAT
Ceat Ltd has reported its financial results for the first quarter of FY26, with a notable decrease in its net profit. The company's Profit After Tax (PAT) for Q1FY26 stood at Rs 135.5 crore, reflecting a decline of 9.2% compared to Rs 149.24 crore in the corresponding period of the previous fiscal year. Despite the dip in profit, Ceat saw an 11.1% year-on-year growth in its revenue, which rose to Rs 3,521 crore in Q1FY26 from Rs 3,168 crore in the same period last year. The revenue growth was driven by increased demand for the company's products, which contributed to the overall sales performance during the quarter. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a modest increase of 2.5%, standing at Rs 391.01 crore in Q1FY26, compared to Rs 381.33 crore reported in Q1FY25. This indicates a slight improvement in the company's operating performance, although the growth in EBITDA was not as substantial as the revenue increase. Ceat's EBITDA margin, however, showed a contraction, falling by 93 basis points to 11.1% in Q1FY26 from 12% in Q1FY25. This decline in margin reflects a slight pressure on the company's profitability despite the increase in revenue and EBITDA. Also read: FIIs raise stakes in smallcaps: 8 stocks surge over 50% in 2025, 2 become multibaggers Live Events Ceat share price history The shares of Ceat have increased by 41.43% over the past year, 20.53% Year-to-Date (YTD), 27.60% in the past 6 months, 27.56% over the last 3 months, and 7.34% over the past 1 month, with no decreases reported in any of these periods. On Thursday, the shares of Ceat closed flat at Rs 3,855.25 on the BSE. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Mint
02-05-2025
- Automotive
- Mint
Ceat set to regain margin muscle, but rising debt may slow the ride
A host of favourable factors is aligning to boost tyre maker Ceat Ltd's margins. While margins declined year-on-year in the March quarter (Q4FY25), they improved sequentially. Consolidated Ebitda margin stood at 11.3% in Q4, ahead of the consensus estimate of 10.7%, while gross margin came in at 37.5%. Easing input costs and price hikes in the two-wheeler and passenger vehicle segments during the quarter provided support. Ceat expects further margin tailwinds in the first half of FY26, driven by softer raw material prices. International rubber prices have fallen by $200 per tonne from the Q4FY25 range of $1,900–2,000, now trading at a ₹ 7-8/kg discount to domestic prices. Read this | Acquisition and capex keep Ceat on a roll despite short-term margin erosion Crude oil, too, has eased to $65 per barrel from $75–80 in Q4 and is expected to hover around $65-70 in the near term. Key crude derivatives such as butadiene and caprolactam were largely stable in Q4 but have declined 2-5% in April. The company plans to retain the gains from lower input costs to support margins, while taking price hikes selectively. Management has indicated comfort at a gross margin level of over 40%. Strategically, Ceat continues to pivot towards margin-accretive segments—two-wheelers, passenger cars, and off-the-road (OTR) tyres—while reducing reliance on the truck segment. 'Revenue contribution from these focus areas has surged over the years (to 63% in FY25 from a mere 20% in FY10)," said a Motilal Oswal Financial Services report dated 30 April. Ceat has also increased presence in high-margin off-the-highway (OHT)/international segments with the Camso acquisition. With Camso's integration, the company expects the international mix in its product portfolio to rise to 26% from around 19%. Camso's financials will be consolidated starting Q2FY26. Read this | Can Camso transform tyre maker Ceat into a high-margin business? Improving profitability prospects have driven earnings upgrades. Emkay Global Financial Services has upgraded Ceat's FY26/FY27 earnings per share estimates by 8%/5% on accelerating growth, and recent raw material price decline. 'We like Ceat given its superior growth prospects led by higher exposure to consumer-facing categories and ongoing market share gains, with potentially strong margin revival ahead if raw material (prices) sustains," said the Emkay report dated 1 May. Also read | In US-China trade war, Indian tyre makers could be collateral damage Ceat shares have gained 22% over the past year, handily outperforming the Nifty500 index. However, the management has flagged a likely increase in debt, from ₹ 1,928 crore currently to ₹ 3,000 crore, as it completes the Camso payment and operations scale. Consequently, the debt-to-Ebitda ratio is expected to rise to around 2.5x, though still below the previous peak of 2.8x.
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Business Standard
29-04-2025
- Automotive
- Business Standard
Ceat Q4 results: Net profit falls 3% to Rs 99 cr; revenue at Rs 3,421 cr
Tyre maker Ceat on Tuesday said its consolidated net profit declined by 3 per cent to Rs 99 crore for the fourth quarter ended March 31, 2025. The company had reported a net profit of Rs 102 crore in the January-March quarter of 2023-24. Its revenue from operations rose to Rs 3,421 crore in the fourth quarter compared to Rs 2,992 crore in the year-ago period, Ceat Ltd said in a regulatory filing. For the year ended March 2025, the company said its net profit declined 26 per cent to Rs 471 crore against Rs 635 crore. The revenue from operations rose to Rs 13,218 crore from Rs 11,943 crore in FY24. "Our operating margins improved in Q4 by over 120bps, largely driven by favourable revenue mix and result of strong cost controls across the value chain," Ceat CFO Kumar Subbiah said. The company incurred capex of Rs 946 crore during the year largely for capacity additions that would prepare it well to deliver growth plans in FY26, he added. "During the quarter, we incurred Rs 37 crore towards voluntary separation of employees in one of our high-cost factories as part of our continuous effort to keep our manufacturing units cost competitive," Subbiah said. The company said its board has approved a dividend of Rs 30 (300 per cent) per share for FY24-25. Shares of the company on Tuesday ended 0.48 per cent up at Rs 3,061.40 apiece on BSE.
