Ceat Q1 Review - Challenging Quarter Amid Rising Input Costs: ICICI Securities

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 Q1 FY22 performance was in-line with consensus expectations, profit after tax declined ~86% QoQ mainly due to gross margin compression (down 315 basis points QoQ). Revenue growth continues to be led by organic growth in commercial vehicle/passenger vehicle segments coupled with new order wins across both new and existing customers (e.g. Nissan magnate, Mahindra Thar).Outlook for H2 FY22 remains mixed due to worries on potential demand slowdown due to Covid-19 third wave and chip shortages led delays.However, margins are likely to improve in H2 FY22 as inputs costs have started to moderate downwards (Bangkok rubber prices down more than 15% since June 2021). On balance sheet side, Ceat's consolidated debt rose to ~Rs 17.8 billion (FY21: ~Rs 14.2 billion)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ceat Q1 Review - Challenging Quarter Amid Rising Input Costs: ICICI Securities

Ceat Q1 Review - Challenging Quarter Amid Rising Input Costs: ICICI Securities

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