Ceat Shares Surge Over 11% After Q2 Profit Climbs 32-Fold
The company's consolidated net profit rose 3125.46% year-on-year to Rs 207.7 crore in the second quarter ended September.
Shares of Ceat Ltd. rose to a seven-week high on Tuesday after its profit surged nearly 32-fold in the July-September quarter of fiscal 2024.
The company's consolidated net profit rose 3125.46% year-on-year to Rs 207.7 crore in the second quarter ended September, according to an exchange filing.
The cap in loss from the exceptional items during the quarter led to a rise in the company's profit. No compensation was paid for the group's voluntary retirement schemes for the quarter and the six months ended September of fiscal 2024, as per the notes to account for in the firm's consolidated financial results.
Similarly, there was no loss reported from the subsidiaries or joint ventures in Sri Lanka on account of the devaluation of its currency in the quarter and six months ended September 2023.
Ceat Q2 FY24 Key Highlights (Consolidated, YoY)
Revenue is up 5.48% at Rs 3,053.3 crore.
Ebitda at Rs 456.1 crore versus Rs 417.6 crore.
Margin at 14.93% versus 7.01%.
Net profit up 3125.46% at Rs 207.7 crore versus Rs 6.4 crore.
Shares of Ceat rose as much as 11.18%, the highest since Aug. 28, before paring gains to trade 6.26% higher at 10:06 a.m. This compares to a 0.50% advance in the NSE Nifty 50.
The stock has risen 35.7% on a year-to-date basis. Total traded volume so far in the day stood at 47 times its 30-day average. The relative strength index was at 59.
Of the 23 analysts tracking the company, 11 maintain a 'buy' rating, four recommend a 'hold,' and eight suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 8%.
