Q1 2027 CEAT Ltd Earnings Call Transcript
Key Points
- Ceat Ltd (BOM:500878) reported strong revenue growth of 18.3% year-on-year on a standalone basis for Q1 FY27.
- The company experienced robust demand in the OEM segment, with growth in some categories reaching the mid-20s.
- International business showed strong growth, particularly in passenger car tires, 2, 3-wheelers, and the agriculture segment.
- Ceat Ltd (BOM:500878) achieved an EcoVadis Gold rating, placing it in the top 5 percentile globally for sustainability performance.
- The company is making significant progress in electrification, with a 25% share in OEM passenger EVs and 2-wheeler EVs.
- Ceat Ltd (BOM:500878) faced a sharp escalation in input costs, with raw material costs increasing by about 15% to 16% compared to the previous quarter.
- Standalone gross margin contracted by 575 basis points quarter-on-quarter, with standalone EBITDA margin at 9.1%.
- The company experienced a significant impact from the depreciation of the Sri Lankan rupee, affecting consolidated profits.
- There is a need for further price hikes to offset rising raw material costs, which could impact demand.
- The Camso business reported negative margins due to startup costs and new hirings without commensurate revenue growth.
Ladies and gentlemen, good day, and welcome to the CEAT Limited Q1 FY27 earnings conference call hosted by Nirmal Bang Equities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Yash Agrawal from Nirmal Bang Equities Private Limited. Thank you, and over to you, sir.
Thank you, (inaudible). Good evening. On behalf of Nirmal Bang Institutional Equities, I welcome you all to 1Q FY '27 Earnings Conference Call of CEAT Tires. The management is represented by Mr. Arnab Banerjee, Managing Director and CEO; and Mr. Kumar Subbiah, Chief Financial Officer. I will now hand over to the management for their opening remarks, after which we will open the floor for Q&A. Over to you, sir.
Yes. Good evening, everybody, and thanks for coming to this call. I'll take you through the business updates for
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