Tire maker CEAT Ltd will expand its international business and enter the US with radial tires for passenger cars, trucks and buses this year.
The company that introduced radial tires for trucks and buses in Europe last July will also increase its penetration with specialty tires in the US and European markets.
“We are planning to enter the US market by the end of this year. Work has been going on for the past two years. The impact of this in the current financial year will be limited as it will happen at the end of the year. We are also increasing our penetration in Africa,” said Kumar Subbiah, Chief Financial Officer of CEAT. business.
CEAT exports increased by 50% in FY22 but fell in FY23 due to geopolitical tensions.
“In fiscal year 2023, we tried to grow exports in the sector especially radial exports but in other categories there was a decline. This is largely attributed to the Russo-Ukrainian war. Countries like Nigeria and Africa don’t have the money to buy tires. We have seen some recovery and we expect the current year to be better. We don’t see any incremental inflationary pressure on the core numbers in 2023,” added Kumar Subbiah.
CEAT reported a consolidated net profit of ₹133 crore for the quarter ended March 2023 compared with ₹35 crore reported in the same quarter last year.
The company previously reported a profit of ₹25 crore for the December quarter. Operating income rose 10.9% in the quarter ended March 2023 at 2,874 crore compared with 2,591 crore in the same quarter. last year.