• Raw material inflation: Brent crude prices have reached $105 to $110 per barrel, while local natural rubber prices have surged above ₹220 per kg from ₹180 to ₹190 per kg, sharply raising overall input costs.
• Price hike strategy: To protect margins, CEAT implemented a 1.5% price increase in the replacement market, an additional 2.5% to 3% hike in early April, and a 5% increase in exports, while actively discussing adjustments with OEMs.
• Supply chain risks: Prolonged geopolitical conflict poses availability and cost challenges for critical inputs like LNG, LPG, CBFS, and caprolactam, though the company initiated procurement safeguards three weeks prior to the conflict.
• Sales and demand: CEAT registered a 15.4% revenue growth with 13.5% volume growth across the first three quarters, but management warned that escalating costs and potential OEM production slowdowns could weigh on demand in coming quarters.