CEAT Shares Reach All-Time High After Stellar Q2FY24 Performance

CEAT Shares Reach All-Time High After Stellar Q2FY24 Performance

VoM News Desk | October 17, 2023 | 12:39 PM IST | Breaking News | Follow on Google News

CEAT Shares Reach All-Time High After Stellar Q2FY24 Performance

CEAT Shares Reach All-Time High After Stellar Q2FY24 Performance

CEAT, one of India’s prominent tire manufacturers, experienced a remarkable surge in its shares during early trading on Tuesday, with prices soaring by over 10% to reach an all-time high of ₹2,337 each. This extraordinary upswing was attributed to the company’s impressive performance in the September quarter, surpassing market expectations.

Exceptional Q2FY24 Performance

CEAT unveiled its Q2FY24 results after market hours on Monday, reporting a consolidated net profit that grew by a staggering 3125% YoY, reaching ₹207 crore in the second quarter. This figure was compared to a net profit of ₹6.4 crore in the corresponding quarter of the previous fiscal year. The company’s stellar performance was driven by lower raw material costs and robust volume growth.

In the preceding June quarter (Q1FY24), CEAT recorded a consolidated net profit of ₹144 crore. The cost of raw materials consumed in Q2 FY24 was notably lower at ₹1,729.8 crore, compared to the previous year’s figure of ₹1,953.3 crore for the same quarter. Additionally, revenue from operations in Q2FY24 reached ₹3,053.3 crore, reflecting a 5.5% YoY increase from the previous fiscal’s similar quarter, which had recorded ₹2,894.5 crore. CEAT also reported an EBITDA of ₹461.8 crore in Q2, signifying a 126.6% increase from the ₹203.8 crore reported in Q2 FY23.

Market Response and Share Performance

CEAT shares displayed a strong start during Tuesday’s session, opening with a 10.37% gap-up at ₹2,320 each, compared to the previous closing price of ₹2,101.95. They continued to strengthen, reaching an all-time high of ₹2,337, marking a 10.76% increase. This impressive share surge comes on the back of an upward trajectory that CEAT’s shares have maintained throughout the current year, resulting in a return of nearly 38%.

CEAT’s strong performance in the last two years has seen its shares gain 65.72%, and over the last three and five-year periods, they have rallied 126% and 97%, respectively.

About CEAT

CEAT, founded in 1958, is one of India’s leading tire brands and is the flagship company of the RPG Group. CEAT produces over 41 million high-performance tires catering to various segments, including 2-3 wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles.

VoM News Desk

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