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Ceat Q1 Review - Rising Debt, Elevated Raw Material Cost Are Key Headwinds: Dolat Capital

Ceat Q1 Review - Rising Debt, Elevated Raw Material Cost Are Key Headwinds: Dolat Capital

<div class="paragraphs"><p>A Ceat Tyre store. (Photo: Vijay Sartape/&nbsp;BQ Prime)  </p></div>
A Ceat Tyre store. (Photo: Vijay Sartape/ BQ Prime)

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Dolat Capital Report

While overall the demand scenario is gradually improving now, raw material inflation has continued to hit Ceat Ltd.'s operating margin and bottom line, Ebitda margin contracted 137 basis points QoQ to 5.9%.

Overall volume increased 7% QoQ led by strong growth in original equipment manufacturers and in replacement volume of passenger car radial, offset by flattish volume in truck and bus radial.

Ceat's management sounded positive for volume growth in FY23. Expect strong growth in the truck-bus radial, farm and passenger car radial segment led by sustainable uptick in OEMs demand and improvement in replacement demand. Two-wheeler tyres demand (replacement and OEMs is also showing improvement.

Click on the attachment to read the full report:

Dolat Capital CEAT Q1FY23 Result Update.pdf

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