Ceat Q4 Review - Raw Material Headwinds, Unfavourable Mix Dent Margins: Prabhudas Lilladher
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Ceat Q4 Review - Raw Material Headwinds, Unfavourable Mix Dent Margins: Prabhudas Lilladher

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Ceat Ltd.’s Q4 FY21 consolidated results missed our estimates, as margin came lower at 11.4% (down 130 basis point YoY/ 340 basis point QoQ, our estimate 13.4%) led by raw material headwinds and lower replacement mix.

As gross margins are anticipated to remain weak in H1 due to raw material inflation (up 8-10% increase in Q1) and weaker mix (replacement share to normalize to ~60% versus 65% in H2), we expect margins to remain weak in Q1 FY22.

Click on the attachment to read the full report:

Prabhudas Lilladher Ceat Q4FY21 Result Update.pdf

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