CEAT slips after Q2 PAT plunges 40% YoY to Rs 112 crore
The company reported profit before exceptional items and tax of Rs 182 crore in Q2 FY27, compared to Rs 246 crore in the same period a year ago. The company reported exceptional items of Rs 13 crore during the quarter.
EBITDA declined 11.4% to Rs 452 crore in Q2 FY27 from Rs 511 crore in Q2 FY26. The EBITDA margin stood at 9.5% as compared with 13.5% in the corresponding quarter of the previous year.
Arnab Banerjee, MD & CEO, CEAT, said, ?In Q2, we delivered a strong double-digit revenue growth of 26% Y-o-Y, continuing the momentum of the past several quarters, led by growth in premium segments across BUs. The West Asia crisis kept raw material costs high and did present challenges, but we responded with tighter cost controls and disciplined execution. In the second half of the year, we shall look at delivering double digit growth again, alongside further price hikes.?
Kumar Subbiah, CFO of CEAT, said, ?The continuing conflict in West Asia kept commodity costs elevated during the quarter. We will remain focused on calibrated pricing actions and improving our product mix, with moderate price increases. Debt increased during the quarter, largely due to higher capital expenditure of close to Rs 490 crore to increase our capacities where utilisation has been high and dividend payouts. In Q3, we expect cost pressures to persist into Q3 as the commodity prices continue to remain high. However, we will continue to maintain fiscal discipline while investing to meet demand and drive profitable growth.?
CEAT, the flagship company of RPG Enterprises, was established in 1958. Today, CEAT is one of India?s leading tyre manufacturers and has a strong presence in global markets. CEAT produces more than 48 million high-performance tyres, catering to various segments like 2-3 wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles.
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