Rubber News Specialist, Helixtap

Vinod Nedumudy

Rubber News Specialist

Global Commodities Alternative Data and Insights

Helixtap

Helixtap collects, processes and distributes proprietary data, analyses and forecasts for the rubber, latex and automotive markets

Commodities

<ul><li>Q2 FY 2025 sees NR prices hitting all-time high of INR 247/kg</li><li>Revenue of MRF, Apollo and CEAT goes up YoY; of JK Tyre dips</li><li>Tire prices hiked to mitigate impact of NR price rises</li></ul>

Q2 FY 2025 sees NR prices hitting all-time high of INR 247/kgRevenue of MRF, Apollo and CEAT goes up YoY; of JK Tyre dipsTire prices hiked to mitigate impact of NR price rises

Higher NR Prices Erode Profits Of Indian Tire Majors In Q2 FY25

External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

External broker reports(aggregated public sources)

Prabhudas Lilladher is one of India's leading research based financial services organisation.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>CEAT’s Q2FY25 revenue increased by 8.2% YoY, driven by healthy demand in the replacement and international markets.</li><li>Rise in key input prices led to a steep decline in gross margin by 594bps YoY to 37.4%.</li><li>Higher input costs and rise in staff expenses on account of yearly increments, led to EBITDA margin declining by 398bps YoY to 11%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CEAT’s Q2FY25 revenue increased by 8.2% YoY, driven by healthy demand in the replacement and international markets.Rise in key input prices led to a steep decline in gross margin by 594bps YoY to 37.4%.Higher input costs and rise in staff expenses on account of yearly increments, led to EBITDA margin declining by 398bps YoY to 11%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ceat (Ceat In) - Higher Input Costs Pressurizing Margins

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Ceat Ltd (CEAT)’s 2QFY25 performance was impacted by higher RM costs, leading to a 100bp contraction in operating margins QoQ, which stood at 11% (est. 11.5%).</li><li>The outlook for replacement segment across categories and exports remains healthy, with a recovery expected in the OEM segment in H2.</li><li>CEAT’s focus on strategic areas such as PVs/2Ws/OHT/exports (to help margins), along with prudent capex plans (to benefit FCF), should continue to improve its returns in the long run.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ceat Ltd (CEAT)’s 2QFY25 performance was impacted by higher RM costs, leading to a 100bp contraction in operating margins QoQ, which stood at 11% (est. 11.5%).The outlook for replacement segment across categories and exports remains healthy, with a recovery expected in the OEM segment in H2.CEAT’s focus on strategic areas such as PVs/2Ws/OHT/exports (to help margins), along with prudent capex plans (to benefit FCF), should continue to improve its returns in the long run.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ceat - Operating Margins Impacted by Higher RM Costs

<ul><li>Inventory levels come handy for JK Tyres to log best performance  </li><li>Tire majors involved in aggressive pricing amid NR price hike  </li><li>Export segments of Apollo, MRF, JK and CEAT fare well</li></ul>

Inventory levels come handy for JK Tyres to log best performance  Tire majors involved in aggressive pricing amid NR price hike  Export segments of Apollo, MRF, JK and CEAT fare well

Mixed Results For Indian Tire Majors In Q1 FY 2024 25

<ul><li>Motilal Oswal's research report onCeat CEAT’s 4QFY24 results disappointed despite healthy volume growth in the replacement and exports segments.</li><li>Margins were hit by higher ad spending and extended producer responsibility (EPR)-related provisions.</li><li>Management has provided high single-digit volume growth guidance for FY25. We cut our FY25E/FY26E EPS by 14%/8% to factor in higher RM and EPR costs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Motilal Oswal's research report onCeat CEAT’s 4QFY24 results disappointed despite healthy volume growth in the replacement and exports segments.Margins were hit by higher ad spending and extended producer responsibility (EPR)-related provisions.Management has provided high single-digit volume growth guidance for FY25. We cut our FY25E/FY26E EPS by 14%/8% to factor in higher RM and EPR costs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Ceat -Earnings Below Estimate Due to EPR-Led Provisioning

India

Ceat Ltd. manufactures vehicle tires.  The Company produces cross-ply and radial tires for automobiles, construction equipment, scooters and motorcycles. Ceat also manufactures tubes and flaps.  The Company exports its products to many companies around the world.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Ceat Ltd (CEAT IN)

Higher NR Prices Erode Profits Of Indian Tire Majors In Q2 FY25

Escalated raw material prices ate into the profit margin of Indian tire majors in Q2 of FY 2024-2025 (July 2024 to Sept 2024) which saw these...

Helixtap

Ceat (Ceat In) - Higher Input Costs Pressurizing Margins

CEAT’s Q2FY25 revenue increased by 8.2% YoY, driven by healthy demand in the replacement and international markets. Rise in key input prices led to...

Prabhudas Lilladhar

Ceat - Operating Margins Impacted by Higher RM Costs

Ceat Ltd (CEAT)’s 2QFY25 performance was impacted by higher RM costs, leading to a 100bp contraction in operating margins QoQ, which stood at 11%...

Motilal Oswal

Mixed Results For Indian Tire Majors In Q1 FY 2024 25

The first quarter of the new financial year (FY 2024–25) ended June 30, with two top Indian tire majors witnessing a decline in their profit year...

Helixtap

Ceat -Earnings Below Estimate Due to EPR-Led Provisioning

Motilal Oswal's research report onCeat CEAT’s 4QFY24 results disappointed despite healthy volume growth in the replacement and exports segments.

Motilal Oswal

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)