Mumbai-based tyremaker CEAT Ltd reported a 96.4% year-on-year decline in consolidated net profit for the quarter ended June 30, totaling 40 million rupees ($415,174.63). The results missed the 927 million rupee profit estimated by analysts polled by LSEG. Company officials cited rising raw material costs as a primary factor affecting profit margins.
While profits declined, CEAT reported a 22% increase in revenue from operations to 43.18 billion rupees, driven by healthy demand. This figure was slightly below the analyst estimate of 44.27 billion rupees. In response to rising costs, the company implemented a cumulative price increase of 5% during the period, joining competitors Apollo Tyres and JK Tyre in raising prices across various product categories.
Looking ahead, CEAT approved a 12.05 billion rupee investment to add a capacity of 53,000 tyres per day, a project scheduled for completion by the end of fiscal year 2031. The company stated it expects raw material prices to remain elevated through the second quarter and plans to continue balancing cost management with pricing adjustments.