The investors of CEAT are currently really having a good time as the tire manufacturing company made unexpected strides during the early trading on Tuesday morning, i.e. today, as the shares of CEAT increased by more than 10.5 percent. As a result of a surge in the share prices of CEAT, the share price hit an all-time high of Rs2,337 per share. Not to mention, CEAT is one of the leading tire manufacturing companies in India. It made unbelievable strides during early trading. The unimaginable growth was attributed to the firm’s impressive performance during the second quarter of the current fiscal year (Q2FY24). Now the expectations of the market have been exceeded. Do you know what consolidated net profit was reported by CEAT? If not, the following sections will let you know. Keep reading this article.
On Monday, October 16, 2023, i.e. yesterday, the company released its financial report for the second quarter of the current fiscal year (Q2FY24) after the market closed. In its report, the company cited its consolidated net profit of Rs207 crore which was 3125 percent YoY growth compared to a net profit of Rs 6.4 crore for the same period of the previous fiscal year. Yes, you heard it right, CEAT’s profit surged to 3125% YoY in Q2FY24. It is believed that this immense profit is attributed to the cheap raw material costs and health volume growth. Shift to the next section and read more details.
Talking about CEAT’s net profit for the first quarter of the current fiscal year, the company reported a net profit of Rs144 crore. Kindly note that the raw material cost in the second quarter of the current fiscal year was lower at Rs1729.8 crore compared to Rs1953.3 crore for the same period of the previous year. Furthermore, the revenue from operations in the second quarter of the current fiscal year reached Rs3,053.3 crore, reflecting a 5.5 percent YoY surge from the previous fiscal’s similar quarter, which had recorded Rs2,894.5 crore.
CEAT also reported an EBITDA of Rs461.8 crore in the second quarter, depicting an increase of 126.6 percent from the Rs203.8 crore reported in the same quarter the previous year. The EBITDA margin for the same quarter this year stood at 15.1 percent, indicating an 808 basis points (bps) YoY increase and a 202 (bps) QoQ growth. CEAT shares exhibited a strong start to Tuesday’s session in response to Q2FY24 performance, opening with a 10.37 percent gap up at Rs2,320 compared to the previous closing price of Rs2101.95. They continued to strengthen taking it to an all-time high of Rs2337, a 10.76 percent increase.