New Delhi, Jul 17 (PTI) Tyre maker CEAT Ltd on Thursday reported a 27.16 per cent decline in consolidated net profit to Rs 112.3 crore in the June quarter, impacted by higher raw material cost.

The company, which had posted a consolidated net profit of Rs 154.18 crore in the first quarter last fiscal, said it will invest about Rs 450 crore in the capacity expansion of its Chennai plant.

Also Read | 'A Decade of Digital India' Reel Contest by Government of India: How To Participate and Win Up To INR 15,000? Check Submission Guidelines.

Consolidated revenue from operations stood at Rs 3,529.41 crore in the first quarter as against Rs 3,192.82 crore in the year-ago period, CEAT Ltd said in a regulatory filing.

Total expenses in the quarter under review were higher at Rs 3,375.1 crore compared with Rs 3,003.56 crore in the year-ago period, it added.

Also Read | Kolkata Fatafat Result Today, July 17, 2025: Kolkata FF Live Winning Numbers Released, Know When and Where To Check Result Chart of Satta Matka-Type Lottery Game.

Cost of materials consumed was higher at Rs 2,238.76 crore over Rs 1,910.81 crore in the same period a year ago, the company said.

In an investor presentation, the company said, "On YoY (Year-on-Year) basis, EBITDA (earnings before interest, tax, depreciation and amortisation) margin contracted due to an increase in the RM (raw material) basket over last year."

CEAT Ltd MD & CEO Arnab Banerjee said, "We continue to grow at a strong pace with double-digit growth in top-line, driven by OEM (original equipment manufacturers) and replacement segments."

Looking ahead, he said, "We are well poised to ride the premiumisation and electrification trend in the domestic market, and renew our growth in international markets with stability in the geopolitical situation."

The company said its board has approved reappointment of Banerjee as Managing Director and Chief Executive Officer for a further term of two years, effective April 1, 2026, subject to approval of shareholders.

On the Chennai plant capacity expansion, the company said it currently has about 70 lakh tyres per annum with about 80 per cent utilisation.

It plans to add "about 35 per cent of the current capacity PCUV (passenger cars and utility vehicles)" at the Chennai plant, the company said.

The investment required is about Rs 450 crore, and the proposed capacity addition is expected by the end of FY27. This investment will be funded by way of a mix of internal accruals and debt, it added.

CEAT said good growth is expected in the medium term in the PCUV category, and the fresh investment is intended to add capacity progressively to service the anticipated future demand.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)