Are CEAT latest results good or bad?

CEAT has reported its financial results for the quarter ending June 2025, revealing a mixed operational performance. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 3,529.41 crore, reflecting a near-term positive sales trend with a quarter-on-quarter growth of 3.18%. However, this growth comes amid rising challenges, as interest expenses reached Rs 82.05 crore, marking a significant increase of 10.28% compared to the previous quarter, indicating higher borrowing costs.
In terms of profitability, CEAT's profit after tax (PAT) for the quarter was Rs 114.85 crore, which represents a decline of 7.0% when compared to the average PAT of Rs 123.50 crore from the previous four quarters. Additionally, the company's debtors turnover ratio decreased to 7.99 times, the lowest in the last five half-yearly periods, suggesting a slowdown in the pace of settling its debtors.

Overall, while CEAT has seen a notable achievement in net sales, the increase in interest expenses and the decline in PAT and debtors turnover ratio highlight ongoing operational challenges. Furthermore, the company saw an adjustment in its evaluation over the past three months.