Ceat Q3 Results Review - Result Above Estimate; Raw Material Cost Benefit Drives Beat: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Ceat Ltd.'s Q3 FY23 revenue/Ebitda/adjusted profit after tax stood up 13%/+77%/LTP YoY to Rs 27.3 billion/Rs 2.4 billion/Rs 357 million, respectively. The nine months-FY23 revenue/Ebitda/adjusted profit after tax grew 25%/16%/37% YoY, respectively.Gross margin expanded 200 bps QoQ (60 bps YoY) to 34.5% (inline). Raw material basket dipped ~4% QoQ and there was an average price hike of ~0.5% in Q3 FY23. Further, lower other expenses (down 210 bps YoY) resulted in an Ebitda margin expansion of 320 bps YoY (up 170 bps QoQ) to 8.7% (versus estimate 8.0%). Ebitda grew 77% YoY to ~Rs 2.4 billion (versus estimate Rs 2.2 billion) during the quarter. Ceat's adjusted profit after tax stood at Rs 357 million (versus loss of Rs 159 million in Q3 FY22; estimate profit of Rs 419 million), hit by weakness in the Sri Lankan subsidiary. Debt increased to Rs 23.4 billion as of Dec-22 (from Rs 23 billion in Sep-22 and Rs 22.6 billion in Dec-21) mainly due to the ongoing capex activities..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ceat Q3 Results Review - Result Above Estimate; Raw Material Cost Benefit Drives Beat: Motilal Oswal

Raw material basket dipped ~4% QoQ and there was an average price hike of ~0.5% in Q3 FY23.

Choose a plan