Tyre manufacturer CEAT's Q1 FY24 results brought good news for investors as the company reported an impressive performance. The company's consolidated net profit for the quarter stood at Rs 144.6 crore, a remarkable 14-fold increase compared to Rs 9.25 crore in the same period last year. This substantial growth in profitability led to a surge of nearly 5% in CEAT's shares, which reached Rs 2,592 in Wednesday's trade.
During the first quarter of the current fiscal, CEAT's revenue from operations registered a rise of 4.1% year-on-year, reaching Rs 2,935.2 crore compared to Rs 2,818.4 crore in the year-ago period.
The operating performance of the company also displayed a significant improvement, with earnings before interest, taxes, depreciation, and amortization (EBITDA) amounting to Rs 384.7 crore in the June quarter. This figure marks a notable increase from the Rs 171.3 crore reported in the year-ago period, and the EBITDA margin stood at 13.1% in Q1 FY24.
Arnab Banerjee, MD & CEO of CEAT, expressed confidence in the company's performance, stating that the replacement and international business segments are showing promising results with a strong product-market fit. He also highlighted that CEAT's product performance is being well-received as superior across key geographies.
The company's efficient asset utilization, improved efficiencies through digital interventions, and other initiatives are expected to further enhance margins in the future.
Following the positive financial results, CEAT's shares surged to Rs 2,592 in Wednesday's trade, and at 10.31 am, the scrip was trading 4% higher at Rs 2,579 on BSE. The stock has performed remarkably well this year, posting a 59% surge year-to-date. Additionally, CEAT has delivered impressive returns to its investors, with the stock witnessing a remarkable growth of 112% in the last one year.
