Q1 2025 CEAT Ltd Earnings Call Transcript
Key Points
- Ceat Ltd (BOM:500878) reported a strong revenue growth of 8.5% year-on-year for Q1 FY25.
- The company achieved its highest-ever production in its Chennai, Bhandup, and Halol plants, leading to better capacity utilization.
- Ceat Ltd (BOM:500878) continues to invest heavily in R&D, maintaining above-industry levels.
- The company has seen a significant increase in organic traffic on its website, with a 45% growth and a 42% uptick in brand conversion volume.
- Ceat Ltd (BOM:500878) has consolidated its position in the electric vehicle OEM market, achieving close to a 30% share in both two-wheeler and three-wheeler EV OEMs.
- The company faced a margin squeeze in Q1 due to a significant rise in raw material prices, particularly natural rubber.
- Gross margin shrunk by about 184 basis points year-on-year and 306 basis points quarter-on-quarter.
- Domestic natural rubber prices surged by about 25% to 30% over the past few months, reaching the highest levels in the last 13 years.
- Ceat Ltd (BOM:500878) experienced headwinds in international business due to significant rate hikes and non-availability of containers.
- The company had to implement necessary controls on discretionary expenses due to the increase in raw material costs.
Ladies and gentlemen, good day and welcome to the CEAT conference call hosted by Elara Securities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Jay Kale from Elara Securities Private Limited. Thank you. And over to you sir.
Thank you. On behalf of Elara Securities India Private Limited, I welcome you to the Q1 FY25 result conference call of CEAT Limited. From the management side, we have Mr. Arnab Banerjee, Managing Director and CEO, and Mr. Kumar Subbiah, Chief Financial Officer.
I would now hand over the call to Mr. Arnab Banerjee for his opening remarks. Over to you sir.
Good afternoon, and welcome to CEAT's Q1 FY25 earnings call. I'll be taking you through the business update for the quarter and then hand over to Kumar for his remarks on financial performance. Post that
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