CEAT's Q1 results show promising sales and debt reduction, receives 'Buy' call from MarketsMOJO

CEAT, a leading tyre company in the midcap industry, has recently announced its financial results for the quarter ending June 2024. The company has received a 'Buy' call from MarketsMOJO, indicating positive prospects for investors.

Despite a flat performance in the quarter, CEAT has shown promising results in various areas. The company's net sales for the quarter were the highest in the last five quarters, standing at Rs 3,192.82 crore. This reflects a positive trend in near term sales. Additionally, CEAT has been able to reduce its debt-equity ratio to 0.44 times, indicating a decrease in borrowing compared to equity capital. The company has also shown improvement in its debtors turnover ratio, settling its debtors faster.

However, there are some areas that need improvement for CEAT. The profit before tax less other income (PBT) for the quarter has fallen by 13.4% compared to the average of the previous four quarters. The same trend is seen in the profit after tax (PAT), which has fallen by 12.7%. The operating profit (PBDIT) for the quarter is also the lowest in the last five quarters, and the operating profit margin has decreased to 11.99%. These factors indicate a negative trend in the company's efficiency.

Despite these challenges, CEAT remains a strong player in the midcap industry, with a positive outlook for the future. With its strong financials and a 'Buy' call from MarketsMOJO, CEAT is a company to watch out for in the coming quarters.