Ceat Q1FY24 PAT jumps over 15 times at Rs 144 crore

Tyremaker Ceat has reported an over 15-fold jump in its consolidated profit after tax (PAT) in its April-June quarter results for fiscal 2023–24 (Q1FY24) at Rs 144 crore, compared to Rs 9.25 crore in the corresponding period last year.

On a consolidated basis, the company’s revenue closed at Rs 2,935 crore, up 4.1% in Q1FY24, as compared to Rs 2,818.4 crore in the same period a year ago. During the quarter under review, the company's EBITDA margin stood at 13.1%.

“Replacement and International business are looking good with good product - market fit. Our product performance continues to get accepted as superior across key geographies. Better sweating of assets, improved efficiencies through digital interventions and otherwise, shall improve margins going forward,” Arnab Banerjee, MD andCEO, Ceat, said.

On a standalone basis, the company’s revenue stood at Rs 2,921 crore and its EBITDA margin stood at 13.2%. Net profit stood at Rs 159 crore in Q1 FY24.

According to Kumar Subbiah, CFO of the company, the company has focused and optimised on operational efficiencies during the quarter. "Our improved product mix and procurement efficiencies have helped improve our gross margins leading to an improvement in our overall margins both sequentially and year-on-year. Our continuous focus on cash has helped us reduce our debt for the second consecutive quarter, and we have seen a reduction in our standalone gross debt by Rs 97 crore," the CFO added.