Consolidated EBITDA stood at Rs. 173 crore, Operating margin of 9.1%
Mumbai, India – July 2021:
CEAT Limited (CIN No: L25100MH1958PLC011041), an RPG Group company, announced its unaudited results for the first quarter ending on 30th June 2021.
On a consolidated basis, the Company’s revenue closed at Rs. 1,906 crore and EBITDA margin stood at 9.1%, a contraction of over 265 bps vs Q4 FY20-21. Net profit stood at Rs. 23 crore.
Commenting on the results as well as the outlook of the business, Mr. Anant Goenka, Managing Director, CEAT Limited said,
“It has been a challenging quarter with the second wave of COVID-19 restricting demand and rising input costs affecting margins. However, with progressive drop in COVID cases in the last four weeks and a steady increase of vaccination in the latter part of the quarter, we are witnessing a gradual pickup in demand from early June in the replacement market and OEMs. The spike in commodity prices has impacted gross margins, which was partially offset by price increases over the last quarter.
We continue to focus on the wellbeing of our employees, manage costs and stay prepared as demand bounces back.
Besides the uncertainties of a third wave of COVID infection in the country, we expect to see improving consumer confidence and growth going forward. We will continue to calibrate the market dynamics and align our business plans to the evolving scenario.”
On a standalone basis, the Company’s revenue stood at Rs. 1,898 crore and EBITDA margin stood at 8.7%, a contraction of over 248 bps vs Q4 FY20-21. Net profit stood at Rs. 20 crore.
Mr. Kumar Subbiah, CFO of CEAT Limited, said
“Our overall margins have been impacted compared to the previous quarter owing to a steep rise in raw material prices and lower revenues during the quarter due to the second wave of COVID-19. While raw material prices have currently remained range-bound, we would still need to take some more price increases to offset the impact.”
About CEAT Ltd:
CEAT, the flagship company of RPG Enterprises, was established in 1958. Today, CEAT is one of India’s leading tyre manufacturers and has a strong presence in global markets. CEAT produces over 15 million tyres a year and offers the widest range of tyres to all segments and manufactures world-class radials for heavy-duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, cars, motorcycles and scooters as well as auto-rickshaws.
About RPG Enterprises :
RPG Enterprises, established in 1979, is one of India’s fastest-growing business groups with a turnover of US$ 4 Billion. The group has diverse business interests in the areas of Infrastructure, Tyres, Pharma, IT and Specialty as well as in emerging innovation led technology businesses.