Ceat earnings drop 19% as material cost rises impact margins

Mumbai, India – Ceat Ltd has seen an 18.6% year-on-year decline in third quarter earnings (EBITDA) to INR3.5 billion, the company announced 15 Jan.

Sales for the three months to end of December 2024 were up 11% year-over-year at INR33 billion, driven by the replacement segment.

Earnings margin fell from 14.4% reported in the third quarter of last year to 10.5% in fiscal year 2025, Ceat noted.

“Rising raw material costs have impacted our margins, [but] we progressively passed on part of the increase through price increase in select categories during the quarter,” said Arnab Banerjee, managing director and CEO.

Demand, added Banerjee, “continues to remain stable, and our order book pipeline is robust across all segments.”

Raw material prices looked “flattish” in the final quarter of the year, reported the Ceat leader, who expects the tire maker's “growth momentum" to continue.