RPG group flagship CEAT recorded a 6% year-on-year (y-o-y) dip in standalone net profit for the June quarter, after accounting for a voluntary retirement scheme (VRS) that contributed to the profit decline.
The Mumbai-based tyre maker posted a net profit of `149 crore for the reporting quarter, while its standalone revenue from operations rose 8% y-o-y to `3,168 crore.
The compensation in respect of employees who opted for VRS aggregated to Rs 4 crore for the June quarter. CEAT also purchased the licences to fulfil its Extended Producer Responsibility (EPR) obligations pertaining to Rs FY23 and accordingly Rs 11.5 crore was reversed.
The company’s EBITDA margin was down to 12% for the reporting quarter from 13.2% clocked during the same quarter last year.
Arnab Banerjee, MD & CEO, CEAT, said: “We are encouraged by the strong growth we’ve had in the replacement and export segments across all categories during the quarter. Despite facing margin pressure from significant increases in raw material costs and ocean freight, we are actively mitigating these challenges through strategic price adjustments.”
“Looking ahead, we anticipate continued momentum in volume throughout Q2 and beyond. Additionally, we are front-loading our capex this year to ensure we are well-prepared to meet rising demand,” Banerjee added.
Its capex for the June quarter stood at Rs 254 crore funded largely by the company’s internal accruals.
