Ceat more than doubles earnings, posts ‘highest’ quarterly revenue

Mumbai, India – Indian tire maker Ceat Ltd has more than doubled second quarter earnings (EBITDA) helped by higher sales during the three months to end of Sept.

For the period, Ceat posted a 5.5% year-on-year increase in revenue to INR30 billion (€328 million), its 'highest ever' quarterly sales level.

According to the manufacturer, the performance was supported by “double-digit growth in the replacement and international businesses.”

Second quarter earnings (EBITDA), meanwhile, more than doubled to INR4.6 billion, compared to INR2.0 billion reported last year.

The company reported a “healthy quarter-on-quarter volume growth” driven by strong OEM demand ahead of India’s festive season starting in October.

Replacement and export volumes remained stable during the quarter despite “adverse seasonality.”

On a year-on-year basis, Ceat said its OEM business continued a “healthy run”, while exports remained on recovery path.

On the other hand, Ceat noted that a “significant increase” in the commodity prices, impacted its margins.

“We took selective price increases during the quarter that offset part of the cost impact,” said Arnab Banerjee, managing director and CEO.

The revenue outlook, the Ceat leader went on to say, remained positive as the company enters the third quarter.