CEAT Share Price Dropped Over 6% After Release of Q3FY25 Earnings

On January 16, 2025, CEAT share price slipped over 6% and touched the day low of ₹2840 at 09:55 AM after opening at ₹2949.95 on BSE. The fall in CEAT share price follows the company’s release of Q3FY25 results, wherein it reported consolidated revenue of ₹3,299.9 crore, marking an 11.4% year-on-year growth.

CEAT Q3 FY25 Performance

The EBITDA margin stood at 10.5%, and the net profit was ₹97.0 crore. However, the rise in raw material costs compared to Q2FY25 led to a 59 bps QoQ contraction in gross margin. Higher raw material costs also impacted EBITDA margins, contributing to a YoY margin decline.

At the end of the reporting period, the company’s debt stood at ₹1,835 crore, with a Debt/Equity ratio of 0.43x. The capital expenditure for the quarter was approximately ₹280 crore, funded through internal accruals. Working capital improvements resulted in a sequential debt reduction of about ₹50 crore. Leverage ratios remained stable compared to the previous quarter.

CEAT International Business Performance

The company experienced strong YoY volume growth in its replacement and international business segments, while the OEM segment showed signs of recovery. The international business continued to recover with impressive YoY growth, although the quarter-on-quarter growth remained stable. As expected, the quarter was seasonally weaker compared to Q2, with flat volumes across all segments. Both QoQ and YoY, realizations showed improvement.

Commenting on the results as well as the outlook of the business, Mr Arnab Banerjee, MD & CEO, CEAT Limited, said, “We witnessed a strong year-on-year double-digit growth, driven by the replacement segment. While the rising raw material costs have impacted our margins, we progressively passed on part of the increase through price increases in select categories during the quarter. The demand continues to remain stable, and our order book pipeline is robust across all segments. Raw material prices look flattish in Q4 and we expect growth momentum to continue.”

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