CEAT Reports 8.2% YoY Revenue Growth in Q2 FY25

Key Takeaways from CEAT's Q2 FY25 financial results

• CEAT reported revenue from operations at Rs 3,304.53 crore, up by 8.2 percent year on year and about 2.5 percent compared with Q2 FY24.
• Profit for the period was reported at Rs 121 crore, down 41.5% from Rs 207 crore for the same period last year.
• Total income in Q3 FY25 rose almost 10 percent from Q2 FY25, but the rising expense lines and especially the steep profit decline point to challenges in the market.

Additionally, the total income for the quarter reached Rs 3,307.98 crore, marking a rise of 8.0% from Rs 3,063.79 crore during the same period last year.

However, total expenses also saw an increase, amounting to Rs 3,145.81 crore, which is up by 12.6% from Rs 2,793.41 crore in Q2 FY24. This rise in expenses was primarily driven by higher costs of materials consumed, which rose to Rs 2,116.14 crore from Rs 1,729.77 crore, along with an increase in other operational costs.

Despite the increase in total expenses, CEAT reported a profit for the period of Rs 1,214.50 crore, although this represents a decrease of 41.5% from Rs 207 crore in the previous year. The company's EBITDA for the quarter stood at Rs 295.83 crore, reflecting a decline compared to Rs 405.36 crore in the same quarter last year, marking a year-over-year decrease of approximately 27.1%.

About CEAT Limited  

CEAT, one of India's largest and fastest-growing tyre manufacturers, was established in 1958. Since being part of the RPG Group since 1982, CEAT has continued its journey to the pinnacle of achieving one of the Top 25 Best Workplaces in Manufacturing by GPTW in 2022. With over 1,900 SKUs in the portfolio and more than 170 new products added in FY23, CEAT is well placed on the innovation leaderboard. In FY23, the company produced over 45.07 million tyres and also released India's first-ever tyre range for two and four-wheelers that is specific for EV.

Key Takeaways from IOB’s Financial Performance 

• IOB reported a strong 24.32% YoY increase in net profit, reaching ₹777 crore in Q2 FY25, up from ₹625 crore in Q2 FY24.  
• Total business grew by 12.20% YoY to ₹5,40,801 crore, with total deposits increasing by 13.75% and gross advances rising by 10.16%.
• Total income rose by 22.34% YoY, with interest income growing by 17.69% and non-interest income surging by 46.59%. 
• The NIM remained stable at 3.08%, indicating efficient profitability management.

Total business for IOB saw a significant YoY growth of 12.20%, reaching ₹5,40,801 crore, up from ₹4,82,006 crore in the previous year. The growth in deposits was notable, with total deposits increasing by 13.75% to ₹3,10,652 crore, while gross advances rose by 10.16%, amounting to ₹2,30,149 crore. The bank's operating profit also witnessed a substantial increase of 26.89%, rising to ₹2,128 crore in Q2 FY25 from ₹1,677 crore in Q2 FY24.

In addition to business growth, IOB made remarkable progress in improving its asset quality. The Gross Non-Performing Assets (NPA) ratio fell by 202 basis points (bps) to 2.72%, down from 4.74% a year ago. Similarly, the Net NPA ratio improved by 21 bps, settling at 0.47%, a significant improvement over the previous year. The Provision Coverage Ratio (PCR) also increased by 30 bps, reaching 97.06%, demonstrating the bank's proactive approach to managing credit risk.

Income generation remained robust during the quarter, with total income increasing by 22.34% YoY, totaling ₹8,484 crore. Interest income grew by 17.69% to ₹6,851 crore, while non-interest income saw a remarkable rise of 46.59%, reaching ₹1,633 crore. Additionally, the Net Interest Margin (NIM), a key profitability indicator, stood at 3.08% for Q2 FY25, reflecting efficient income management.

About Indian Overseas Bank (IOB)

Indian Overseas Bank (IOB), founded on February 10, 1937, by Shri M.Ct.M. Chidambaram Chettyar, is a nationalised bank with a strong presence across India. It operates 3,277 branches, 3,501 ATMs, and has 8,194 business correspondents. Internationally, IOB serves customers in Singapore, Hong Kong, Thailand, and Sri Lanka, catering to over 41 million active customers.

Key Takeaways from Hindustan Zinc Financial Performance:

• Hindustan Zinc reported a 35% increase in net profit for Q2 FY25, reaching Rs 2,327 crore, up from Rs 1,729 crore in the same quarter last year.  
• Revenue from operations rose 21% to Rs 8,004 crore compared to Rs 6,619 crore in Q2 FY24.  
• EBITDA increased by 30.6% to Rs 4,123 crore, with an EBITDA margin of 50%, up from 46.2% in the previous year.  
• The board approved an investment of Rs 327 crore for at least a 26% equity stake in Serentica Renewable India Private Limited or its affiliates.  

The company's revenue from operations rose 21% to Rs 8,004 crore in the second quarter of financial year 2024-25 as against Rs 6,619 crore of the same quarter previous fiscal year.

At operational level, EBITDA (earnings before interest, tax, depreciation, and amortisation) stood at Rs 4,123 crore, up 30.6% in the current quarter compared to Rs 3,139 crore of Q2 FY24. EBITDA margin stood at 50% in the Q2FY25 compared to 46.2% in the corresponding quarter previous year.

Additionally, the Vedanta-backed company's board approved investment of Rs 327 crore for a minimum 26% equity stake in Serentica Renewable India Private Limited (SRIPL) or its affiliates.

About Hindustan Zinc Limited: 

Hindustan Zinc is India's largest and the world's second-largest integrated zinc producer, boasting over 50 years of operational experience. The company prioritises the safety of its workforce and the conservation of natural resources through innovative technologies. With a total resource and reserve base of 456.3 million tonnes and an average zinc-lead grade of 6.8%, Hindustan Zinc enjoys a mine life exceeding 25 years. It holds approximately 75% market share in India's primary zinc industry and ranks as the third-largest silver producer globally, with an annual capacity of 800 metric tonnes.

A subsidiary of Vedanta Limited, which owns a 64.9% stake, Hindustan Zinc also has the Government of India as a stakeholder with 29.5%. The company is publicly traded on both the NSE and BSE. Its operations include lead-zinc mines, hydrometallurgical and pyro metallurgical zinc and lead smelters, as well as sulphuric acid and captive power plants, primarily located in five districts of Rajasthan and one in Uttarakhand. Key facilities include the Zawar Group of Mines, Rampura Agucha Mine, and processing smelters at Debari, Chanderiya, and Dariba, alongside a silver refinery in Pantnagar, Uttarakhand.

Key Takeaways from Aether Industries Financial Performance:

• Aether Industries experienced a 5.2% year-on-year decline in net profit for Q2 FY25, totaling Rs 34.8 crore, down from Rs 36.7 crore in the same quarter last year.  
• The company's revenue rose by 21% year-on-year to Rs 198.8 crore, up from Rs 164.2 crore in Q2 FY24.  
• EBITDA increased by 16.6% to Rs 53.4 crore, compared to Rs 45.8 crore in the previous year. 
•  The EBITDA margin was 27% for the September quarter, slightly down from 28% in the same period last year.

However, the company's revenue from operations rose 21% year-on-year to Rs 198.8 crore in Q2 FY25 as against Rs 164.2 crore in the same quarter of the financial year 2023-24.

Aether Industries reported a 16.6% increase in EBITDA (earnings before interest, taxes, depreciation, and amortisation), reaching Rs 53.4 crore in the latest quarter, up from Rs 45.8 crore a year earlier. The margin for the September quarter was 27%, compared to 28% in the same period last year.

About Aether Industries Limited:

Aether Industries Limited, headquartered in Surat, Gujarat, is dedicated to producing advanced intermediates and specialty chemicals through innovative chemistry and technology. Founded in 2013, the company aims to establish a strong presence in the global chemical industry by focusing on sustainable growth. Over the years, Aether has built a robust infrastructure and a skilled team, starting revenue-generating operations in 2018. With a remarkable compound annual growth rate (CAGR) of nearly 60% between fiscal years 2018 and 2021, Aether has become one of India’s fastest-growing specialty chemical companies, boasting a production capacity exceeding 6,000 MT at its state-of-the-art, DCS-automated facilities.

In addition to its manufacturing capabilities, Aether is a prominent provider of Contract Research and Manufacturing Services (CRAMS) and offers exclusive manufacturing services driven by advanced R&D and pilot plant facilities. The company is certified with various quality and environmental standards, including ISO certifications and Indian GMP, and has joined the UN Global Compact Network India, receiving a Silver EcoVadis Medal for its sustainability efforts. Aether’s mission emphasises producing high-quality products while prioritising safety, health, and environmental considerations, along with continuous innovation in its core technology areas.