Last Updated: October 17, 2023, 11:20 IST
Shares of CEAT Limited zoomed 11 per cent intraday to hit day’s excessive of Rs 2,642 on the NSE after the Indian tyre maker reported a pointy rise in second-quarter revenue which beat estimates, as robust gross sales and decrease bills boosted margins.
In the quarter, consolidated complete income stood at Rs 3,053.3 crore, marking a progress of 5 per cent in opposition to Rs 2,894.5 crore throughout the identical interval final 12 months, the corporate stated in an trade submitting on October 16.
The firm’s complete quarterly bills decreased by 2.5 per cent, primarily pushed by a notable 14 per cent discount in enter prices.
At the working stage, the EBITDA for the second quarter of this fiscal was Rs 456.1 crore, a rise from the Rs 203.1 crore reported in the identical interval of the earlier fiscal.
The EBITDA margin for the reporting quarter was 15 per cent, as in comparison with the 7 per cent margin recorded within the corresponding interval of the earlier fiscal. EBITDA is earnings earlier than curiosity, tax, depreciation, and amortization.
Mumbai-based CEAT is the primary to report outcomes amongst main tyre makers, that are anticipated to see some profit from cooling uncooked materials prices.
Replacement demand – which for CEAT fashioned 53 per cent annual gross sales – and regular gross sales of passenger and business autos are anticipated to assist general trade volumes develop 6 per cent to eight per cent for the monetary 12 months 2024, Crisil Ratings had stated in a be aware final month.
“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,” stated CEAT Chief Executive Officer, Arnab Banerjee.
As a results of Ceat’s robust outcomes, most of its friends like JK Tyre, MRF and Apollo Tyres are additionally buying and selling with positive factors of as a lot as 11 per cent in Tuesday’s session.
In truth, shares of JK Tyre and MRF are buying and selling at their respective report highs.
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