Ceat posts double-digit increases in sales, earnings

Mumbai, India – Ceat Ltd has reported a 62% year-on-year increase in its fiscal third quarter earnings (EBITDA) to Rs2,314 million (€26 million), on consolidated sales of Rs27,270 milllon, 13% higher than a year ago.

Compared to the second quarter, however, revenues at Ceat were 5.8% lower, while the sequential earnings growth figure came in at a more modest 13.6%.  

“Our margins continue to improve as a result of the cooling commodity prices,” managing director Anant Goenka (pictured) said of the third quarter results – for the three months to 31 Dec 2022.

Growth is being “led by domestic demand”, said Goenka, while expressing caution “about international markets that are getting impacted by recessionary trends.” 

For his part, CFO Kumar Subbiah linked Ceat’s improved profitability to “lower input costs and tight control over operating expenses.” 

“We brought down our overall inventories by Rs280 crore, which helped in bringing efficiencies in operating cashflows and minimising our borrowings,” Subbiah added in the 25 Jan statement. 

Looking forward, MD Goenka described the fourth quarter outlook as “positive”, adding that CEAT had capacities available to cater to a growing market demand.

The company, he continued, intends to maintain capex for the year at around Rs.900 crore in line with its annual plan. 

In his commentary, Goenka also flagged up the recent certification of Ceat’s Halol plant as a ‘lighthouse factory’ for Industry 4.0 technologies, by the World Economic Forum.