CEAT Ltd. (NSE: CEAT): Q3FY23 Results Out; Total Income rise 13% YoY

CEAT Ltd. (NSE: CEAT) is a leading tire manufacturing company in India, founded in 1958. The company offers a wide range of tires for various types of vehicles, including two-wheelers, cars, SUVs, and commercial vehicles. CEAT also exports its products to more than 100 countries worldwide. CEAT has manufacturing facilities in India, Sri Lanka, and Bangladesh, and its products are known for their quality, durability, and reliability. The company is committed to innovation and uses the latest technology to design and develop its products. In addition to tires, CEAT also offers other services, including fleet management solutions and roadside assistance. The company has won several awards for its products and services, and is considered a trusted brand in the tire industry.

Ceat Ltd, has announced its Q3FY23 results. In the consolidated Q3FY23, the company reported a revenue of Rs 2,727 crore. The EBITDA margin expanded by 144 bps compared to the previous quarter, and net profit stood at Rs 35 crore. In the standalone Q3FY23, the company’s revenue was Rs 2,711 crore. The EBITDA margin expanded by 160 bps compared to the previous quarter, and net profit stood at Rs 42 crore.

The company’s total income was Rs. 2729.22 crore, a decrease from Rs. 2904.25 crore during the period ended September 30, 2022. However, the total income for the same period last year was Rs. 2416.44 crore, indicating an increase in revenue on a yearly basis. The company’s net profit for the period ended December 31, 2022, was Rs. 35.39 crore, an improvement from the net profit of Rs. 7.83 crore during the period ended September 30, 2022. The net profit for the same period last year was a loss of Rs. 20.01 crore, indicating significant growth in profitability on a yearly basis. The company’s earnings per share (EPS) for the period ended December 31, 2022, was Rs. 8.75, up from Rs. 1.93 during the period ended September 30, 2022. The EPS for the same period last year was a negative of Rs. 4.95, indicating a significant improvement in the company’s profitability.

Anant Goenka, the Managing Director of CEAT Limited, stated that the company’s margins continue to improve due to the cooling commodity prices, and growth is being driven by domestic demand. However, the company remains cautious about international markets that are impacted by recessionary trends. He also expressed a positive outlook for Q4 and mentioned that the company has the capacities available to cater to growing market demand.

Kumar Subbiah, CFO of CEAT Limited, mentioned that the company’s standalone EBITDA margins improved during the quarter, mainly due to lower input costs and tight control over operating expenses. The company also reduced its overall inventories by Rs 280 crore, which helped in bringing efficiencies in operating cash flows and minimizing borrowings. The company intends to maintain its capex for the year at around Rs 900 crore in line with its annual plan. With the correction in commodity costs, the margin outlook is positive for the next quarter.