• Price hike trajectory: To offset a 16% to 18% quarter-on-quarter increase in raw material costs, CEAT has raised prices across replacement, OEM, and export segments, with an additional hike potentially required in September.
• Capex and leverage: The company is maintaining its debt around ₹3,200 crore alongside a planned capex of approximately ₹1,400 crore for the fiscal year, targeting a debt-to-EBITDA ratio of 1.5 to 2.0.
• Export freight challenges: Rising ocean freight rates to Europe and the Americas, which jumped twofold to threefold in July due to West Asia geopolitical tensions, are putting pressure on CIF export contract margins.
• Premium OEM focus: OEMs currently contribute 30% of total revenue, and CEAT aims for premium vehicle models to drive at least 50% of incremental OEM volume to strengthen its downstream presence in the replacement market.