India's CEAT misses quarterly profit estimates on higher rubber prices

JK Tyre & Industries

29/04/2025 15:43

April 29 (Reuters) - Indian tyre maker CEAT CEAT.NS missed fourth-quarter profit estimates on Tuesday, hurt by surging rubber costs.

The company's consolidated net profit fell 8.4% to 994.9 million rupees ($11.69 million) during the quarter from 1.09 billion rupees a year ago.

Analysts on average were expecting profit of 1.12 billion rupees, according to data compiled by LSEG.

Quarterly revenue from operations rose 14% to 34.21 billion rupees, helped by a stable demand for tyres, while total expenses grew 16.5%.

For further earnings highlights, click (Full Story)

KEY CONTEXT

Surging natural rubber prices will weigh on tyre makers' margins for the quarter, analysts have said.

CEAT, whose clients include Tata Motors TAMO.NS and Maruti Suzuki India MRTI.NS, was the first listed tyre maker to report results.

Peers MRF MRF.NS, Apollo Tyres APLO.NS and JK Tyre JKIN.NS are expected to report their earnings later.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth(%)
Profit growth(%)
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
CEAT
CEAT.NS
16.87
7.44
15.63
45.06
BUY
16
0.92
0.99
MRF
MRF.NS
26.09
11.86
7.96
25.53
HOLD
4
1.12
0.16
Apollo Tyres
APLO.NS
15.92
7.68
7.10
35.03
BUY
25
0.92
1.30
JK Tyre & Industries
JKIN.NS
11.08
6.74
6.85
32.17
BUY
5
0.76
1.45

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JAN-MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 86.3050 Indian rupees

($1 = 85.1420 Indian rupees)

TTEX https://tmsnrt.rs/44w9pHJ

 (Reporting by Aleef Jahan; Editing by Savio D'Souza and Shreya Biswas)

 ((aleefjahan.cs@thomsonreuters.com))