Ceat has announced its unaudited results for the third quarter ending on 31 December 2022. On a consolidated basis, the company’s revenue closed at Rs 2,727 crores, EBITDA margin stood at 13%, an expansion of 144 bps vs Q2 FY22-23. Net profit stood at Rs 35 crores.
Commenting on the results as well as the outlook of the business, Anant Goenka, Managing Director, Ceat Limited, said, “Our margins continue to improve as a result of the cooling commodity prices. Growth is led by domestic demand as we remain cautious about international markets that are getting impacted by recessionary trends.
“Going forward, our outlook for Q4 is positive. We have the capacities available to cater to growing market demand. Our factory at Halol has recently been certified as a Lighthouse Factory by the World Economic Forum at Davos for the application of Industry 4.0 technologies. This is a testament to our digital capabilities in driving manufacturing & supply chain efficiencies, better product quality and customer service,” added Goenka.
On a standalone basis, the company’s revenue stood at Rs 2,711 crores and its EBITDA margin stood at 8.7%, an expansion of 160 bps vs Q2 FY22-23. Net profit stood at Rs 42 crores.
Kumar Subbiah, CFO of Ceat Limited, said, “Our standalone EBITDA margins improved during the quarter by 160 bps over the previous quarter largely due to lower input costs and tight control over operating expenses. We brought down our overall inventories by Rs. 280 crores, which helped in bringing efficiencies in operating cashflows and minimising our borrowings. We intend to maintain our capex for the year at around Rs. 900 crores in line with our annual plan. With the correction in commodity costs, the margin outlook is positive for the next quarter.”