CEAT Ltd shares witnessed a strong surge in morning on October 17 after the tyre maker reported a 2,556 per cent year-on-year (YoY) jump in consolidated net profit at Rs 208 crore for the second quarter (July-September) FY23. The stock jumped 7 per cent to reach Rs 2,249 price level.
CEAT reported a net profit of Rs 208 crore in September quarter, up from Rs 8 crore in corresponding quarter of FY23 marking a substantial annual growth. The company's revenue for the reported quarter stood at Rs 3,053.3 crore, a 5.5 per cent increase compared to the year ago period Rs 2,894.5 crore.
At 10:30 am, the stock was trading at Rs 2,231 price level, up by 129 points or 6 per cent, on the National Stock Exchange (NSE).
CEAT Ltd generated an EBITDA of Rs 456.1 crore in the Q2FY24. The EBITDA margin surged to 14.9 per cent, a significant improvement from the 7 per cent margin in the same quarter last year. This performance was aided by a 2.5 per cent reduction in total quarterly expenses, mainly due to a 14 per cent decrease in input costs.
Arnab Banerjee, MD & CEO, CEAT Limited said, “the demand continues to be stable, and we are witnessing mid-single-digit growth in our topline across all three segments – replacement, OEMs, and international business. Our focus on product mix and judicious pricing helped improve margins during the quarter."
“We have also managed to bring our standalone debt down by Rs 103 crore through efficient management of cash flows and improved operating performance," said chief financial officer (CFO) Kumar Subbiah.
On a year-to-date basis, the share price has experienced an increase of around 36 per cent or 600 points. CEAT limited, among the leading tyre manufacturers in India, is a subsidiary of the RPB group. In august month, the company acquired tyresnmore.com which is an aftersales e-commerce corporation, as a part of its expansion move.