CEAT Limited Q2 2023 results: A deep dive into financials and key achievements

CEAT Limited, an esteemed entity under the RPG Group, has disclosed its unaudited results for the Q2 ending 30th September 2023. The consolidated figures present a revenue of Rs. 3,053 crore, a commendable EBITDA margin of 15.1%, marking an increment of 202 bps compared to Q1 FY23-24, and a net profit of Rs. 208 crore.

MD & CEO Arnab Banerjee Shares Insights

Shedding light on the company’s Q2 results and the broader vision, Arnab Banerjee, MD & CEO of CEAT Limited, conveyed, “Our performance in Q2 echoes stability with mid-single-digit growth being observed in our topline across three primary segments: replacement, OEMs, and international business. A strategic blend of product diversity and prudent pricing amplified our margins this quarter. An exceptional moment of pride for us this quarter was the conferral of the Deming Grand Prize by the Japan Union of Scientists and Engineers (JUSE). This global accolade underscores our relentless commitment to quality and innovation. Historically, CEAT stands as the sole tyre enterprise globally to be honored with this award.”

A Closer Look at the Standalone Results

The standalone financial results spotlight revenue at Rs. 3,043 crore, an EBITDA margin at 15.0%, witnessing an upswing of 180 bps from Q1 FY23-24, and a net profit anchored at Rs. 199 crore.

CFO Kumar Subbiah on Financial Strategy and Outcomes

Emphasizing the company’s financial acumen, Kumar Subbiah, CFO of CEAT Limited, expressed, “For the consecutive fifth quarter, our margins have seen a consistent uptick. Persistent endeavors directed towards enhancing cost efficiencies and mix are bearing fruit. Notably, our EBITDA Margin breached the Rs. 400 crore mark for the first time in a quarter, thereby invigorating our net profits. Through adept cash flow management and improved operational performance, we’ve curtailed our standalone debt by approximately Rs. 103 crore.”