Ceat Q4 Review - Upbeat Revenue Performance, Margin Disappoints: Dolat Capital
Stacks of new tyres on a black background in Kentucky, U.S. (Photographer Luke Sharrett/Bloomberg)

Ceat Q4 Review - Upbeat Revenue Performance, Margin Disappoints: Dolat Capital

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Dolat Capital Report

Ceat Ltd. reported stellar topline in Q4 FY21 while Ebitda margin was suppressed on account of high raw material cost (gross margin contracted by 355 basis points QoQ) and adverse mix.

Overall raw material cost increased by about 12% sequentially on a per kilogram basis.

Consolidated revenue grew 3% QoQ to Rs 22.9 billion (versus estimate Rs 22 billion) in Q4 led by:

  1. revival in original equipment manufactures demand and capacity addition,

  2. continued strong replacement demand and

  3. market share gain in provision coverage ratio and truck-bus radial segments.

Click on the attachment to read the full report:

Dolat Capital Ceat Q4FY21 Result Update.pdf

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