Ceat Tyres Shares Stumble By 3% After Q1 Earnings Result

As is the tradition, at the end of every fiscal quarter, markets and the stocks listed on the indices are swayed by the results that are declared at the end of three months. This, needless to say, does not only affect investors but also the companies that declare their results.

Q1 Earnings 2024

Ceat tyres declared their results for Q1 of FY25 on July 18, and market appears to have reacted overtly pessimistically to these results. This is as the company shares dropped by over 3 per cent in the early hours of the trading session on Friday.

In the results filed in an exchange filing, the company recorded a net profit of Rs 154.18 crore in the recently concluded quarter, compared to Rs 102.27 crore in the previous quarter, according to the statement of the consolidated results.

Last fiscal year, the company made a net profit after tax of Rs 144.01 crore. This meant a jump of over 50 per cent in its cumulative net profit compared to the previous quarter.

The company's total income also grew to Rs 3,198.97 crore in the first quarter, compared to Rs 2,994.92 crore. This marked a 14.32 per cent jump in its total income numbers.

Company Shares Drown

In addition, the company's total expenses also rose to Rs 3,003.56 crore in the April-June quarter compared to the total expense of Rs 2,798.06 crore in the previous quarter.

The company shares have seen a steady decline in their prospects since the beginning of the day on Friday. At 10:42 IST, the tyre manufacturing company's shares declined by a significant 3.21 per cent or Rs 89.35, climbing down to Rs 2,693.80 per share.

It is interesting to note that Ceat counterparts in the tyre making industry, namely, MRF tyres and JK Tyres are also trading in red. MRF lost 2.56 per cent of its value. JK Tyres lost 3.81 per cent of its value, meanwhile, Apollo Tyres also lost 4.10 per cent of its value in the early hours of the intraday trade.