After Q2FY24 earnings beat market expectations, CEAT shares increased by almost 10.5% to an all-time high

 After Q2FY24 earnings beat market expectations, CEAT shares increased by almost 10.5% to an all-time high

One of the largest tyre producers in India, CEAT, made substantial progress during early trading on Tuesday, with its shares rising more than 10.5% to an all-time high of $2,337 per share. The company's strong performance in the September quarter, which outperformed market forecasts, was credited with this surprising rise.

After market hours on Monday, the company announced its Q2FY24 results. Its consolidated net profit increased by 3125% YoY to 207 crore, up from 6.4 crore in the same period of the previous fiscal year. The high volume growth and lower raw material costs were credited for this impressive accomplishment.

The business reported a combined net profit of 144 crore for the preceding June quarter (Q1FY24). Notably, the cost of raw materials used in Q2 FY24 was lower at 1,729.8 crore than it was for the same quarter the year before, when it was 1,953.3 crore.

Additionally, the revenue from operations in Q2FY24 totaled 3,053.3 crore, up 5.5% from the same quarter the year before, when it had come in at 2,894.5 crore.

In addition, CEAT reported Q2 EBITDA of 461.8 crore, up 126.6% from the Q2 FY23 figure of 203.8 crore. The EBITDA margin for Q2FY24 was 15.1%, up 808 basis points (bps) from the prior year and 202 (bps) from quarter to quarter.

CEAT shares saw a strong start to Tuesday's session in response to Q2FY24 results, beginning with a 10.37% gap up at 2,320 compared to the previous closing price of 2101.95. They kept growing, reaching an all-time high of 2337, which represents a 10.76% growth.

CEAT's shares have seen an upward trend in the current year thus far, going from $1,644 per share to their current market position of $2,249 per share, resulting in a return of around 38%. The shares have increased 65.72% over the past two years, 126% over the past three years, and 97% over the past five years.

One of the top tire brands in India and the RPG Group's flagship business, CEAT was founded in 1958. According to its website, CEAT produces more than 41 million high-performance tires for a variety of markets, including 2-3 wheelers, passenger and utility vehicles, commercial vehicles, and off-road vehicles.