ICICI Securities: CEAT - Replacement Demand Drives Q2 Margins; Better Growth Outlook
The tread of a newly manufactured tyre is visible at an auto show. (Photographer: Gianluca Colla/Bloomberg)

ICICI Securities: CEAT - Replacement Demand Drives Q2 Margins; Better Growth Outlook

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.

ICICI Securities Report

CEAT Ltd.’s Q2 FY21 performance was an all-round beat on consensus expectations.

Ebitda margins came in at 14.8% (19 quarter high). The beat was primarily driven by -

1. stronger revenue traction in medium and heavy commercial vehicle (33% share in H1 FY21; FY20 - approximately 31%) and two-wheeler (30% share in H1 FY21; FY20 - 31%) and

2. margin improvement due to mix (replacement share up to 71% from 58% and lower commodity prices on crude linked derivatives.

Click on the attachment to read the full report:

ICICI Securities CEAT Q2FY21 Results Update.pdf

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