Shares of tyre manufacturer Ceat Ltd. are trading with gains of 7% a day after the company announced its September quarter results.

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As a result of Ceat's strong results, most of its peers like JK Tyre, MRF and Apollo Tyres are also trading with gains of as much as 11% in Tuesday's session.

In fact, shares of JK Tyre and MRF are trading at their respective record highs.

Ceat's margin continued to surprise positively during the September quarter. On a sequential basis, the company's gross margin expanded by 230 basis points led by better product mix and lower raw material costs.

Product mix for Ceat improved due to the truck segment contribution being lower in September when compared to June and the two-wheeler contribution improving compared to the first quarter.

Brokerage firm Equirus wrote that a focus on product mix and judicious pricing helped improve margins during the quarter.

Elara Capital also mentioned that the read-through for Apollo Tyres and MRF will be more on raw material-related expansion.

Shares of MRF are up 28% so far in 2023. This is its best annual performance since 2017. On the other hand, shares of Apollo Tyres, Ceat and JK Tyre have gained between 20% and 80% so far this year.

(With inputs from Sonia Shenoy)

(Edited by : Amrita)

First Published:Oct 17, 2023 9:42 AM IST