Tyremaker Ceat has reported an over 25-fold jump in its consolidated profit after tax (PAT) in July-October quarter results for fiscal 2023–24 (Q2FY24) at Rs 208 crore, compared to Rs 8 crore in the corresponding period last year.
On a consolidated basis, the company’s revenue closed at Rs 3,053 crore, up 5.5% in Q2FY24, as compared to Rs 2,894.5 crore in the same period a year ago.
According to Arnab Banerjee, MD and CEO, Ceat said that the demand continues to be stable, and the company has witnessed mid-single-digit growth in its topline across all three segments – replacement, OEMs, and international business.
"Our focus on product mix and judicious pricing helped improve margins during the quarter," he added.
During the quarter under review, EBITDA margin stood at 15.1%, an expansion of 202 basis points versus Q1 FY23-24.
“For the fifth quarter in succession, we have improved our margins quarter-on-quarter. Our consistent efforts in improving cost efficiencies and mix are yielding benefits. EBITDA Margin has crossed Rs 400 crore for the first time in a quarter leading to healthy improvement in our net profits. We have also managed to bring our standalone debt down by Rs 103 crore through efficient management of cash flows and improved operating performance," Kumar Subbiah, CFO of Ceat said.