• Raw material pressure: Raw material costs escalated by 20% to 22% between June and March due to geopolitical disruptions, creating margin pressure in Q1 despite steady seasonal demand.
• Price hike trajectory: After implementing a 6% to 7% price increase across April and May, the company plans an additional 5% to 6% hike through June and July, alongside indexed OEM price revisions taking effect on July 1st.
• Middle East disruption: Middle East exports dropped to near zero from late March due to regional conflict, though strong demand from Europe, the US, and Latin America is supporting overall international business growth.
• International business target: CEAT plans to increase the revenue share of its higher-margin international business from 23%–24% to at least 33% over the next 3 to 5 years.