CEAT Limited — Important, 15-01-2025: Capacity addition

**Update Summary:**

CEAT Limited's recent board meeting resulted in the approval of its unaudited financial results for the period ending December 31, 2024, reflecting significant changes in financial metrics. The standalone revenue from operations stood at ₹329.18 crore, showing a slight decrease from ₹330.45 crore in the previous quarter but an increase from ₹294.90 crore year-on-year. The company reported a profit after tax of ₹95.97 crore for the quarter, down from ₹136.51 crore sequentially, but increased from ₹176.66 crore year-on-year. CEAT outlined its plans for a 30% capacity addition at its Nagpur plant by FY2027-28, requiring an investment of ₹400 crore through internal accruals and debt. This capacity expansion aligns with growth prospects in India's 2/3-wheeler industry. An important update concerns the establishment of a subsidiary in Indonesia, now to be a majority-owned entity due to local regulations. Investors should note the company’s strategic adjustments and capacity enhancements as potential indicators for future growth.