- CEAT had a strong Q1 with nearly 3% Q-o-Q volume growth.
- Exports grew by 11% over Q4, while replacement volumes improved by 4%.
- The passenger segment, including two-wheelers and PCUV, reported good growth in Q1.
- Commercial vehicle tire sales saw a marginal drop due to OEM changes in the PCUV segment.
- Demand outlook depends on factors like monsoon and rural demand.
- Export markets are steady, with potential growth in the latter half of the year.
- CEAT has a significant presence in the electric vehicle market, with a focus on both two-wheelers and four-wheelers.
- Globalization is a key driver of growth for CEAT, with expansion in EU and the Americas.
- Premiumization is a focus, with 28% revenue share from premium platforms.
- CEAT continues to invest in the brand and marketing efforts.
- The company plans to expand its TBR (Truck/Bus Radial) capacity, with a phased approach.
- CEAT is committed to sustainability, with a reduction in CO2 emissions and increased use of renewable energy sources.
- FY'24 is expected to be a steady year, with a focus on accelerating growth and improving margins.
- Total capex for FY'24 is likely to be around INR 750 crores.
- CEAT Limited reported a good set of numbers.
- They expect the demand to be influenced by monsoon conditions.
- Two-wheeler demand may see high single-digit to low double-digit growth.
- Passenger car tire demand is expected to grow in high single digits.
- Commercial vehicle demand, both OEM and replacement, may be constrained.
- Raw material costs are expected to remain stable in the current quarter.
- Interest costs could see a slight increase due to rising interest rates, but efforts to reduce debt will continue.
- They have already moved to the new tax regime and have accumulated MAT credits.
- ETR (Effective Tax Rate) is around 25% at the standalone level.
- The impact of ETR on the consolidated level can vary due to dividend distributions and other factors.
- CEAT has been making investments in capacity expansion and debottlenecking.
- They are focused on higher-rim size vehicles like SUVs.
- The company is bullish about the US market and plans to launch products there in FY'24.
- Expansion plans are in place to increase capacity to 160 TPD in the radial segment.
- INR 750 crores capex includes projects for various product segments, downstream plants, and debottlenecking.
- CEAT aims for capex efficiency, especially in debottlenecking projects, to improve ROI.
- Market shifts towards larger rim sizes have influenced CEAT's product focus.
- Demand and supply plans are reviewed annually in Q3 and Q4.
- Overall volume growth on a YoY basis is around 1.5%.
- Export pricing has seen a minor decline but is expected to remain stable.
- Momentum observed in the southern states of India is driven by efforts across different vehicle categories.
- The company is making ongoing efforts in the southern states to drive growth.
- CEAT's expansion plans are flexible and depend on demand and market conditions.
- INR 750 crores capex includes various projects across different regions.
- Interest costs are expected to rise slightly due to increasing interest rates.
- They have been reducing debt and aim to continue debt reduction efforts.
- MAT credit and tax regime changes have been considered in their financial strategy.
- ETR on a consolidated level may vary due to factors like dividend distributions.
- CEAT moved to the new tax regime from FY'21.
- ETR at the standalone level is around 25%.