Expect benefits of GST rate cut to accrue in coming quarters: CEAT MD & CEO

New Delhi, Oct 19 (PTI) Tyre maker CEAT Ltd expects GST rate reduction to have structural positive impact in the coming quarters by aiding demand for two-wheelers, small cars and tractors, particularly in rural markets, according to its MD & CEO Arnab Banerjee.

After posting a strong second quarter, in the third quarter, which is usually a subdued season for the tyre industry, topline may be equal to or slightly lower, Banerjee told PTI.

"GST 2.0 came in at the fag end of the (second) quarter, so that will play out in subsequent quarters. We are positive on that development, that should aid demand for two-wheeler farms and small cars and their types primarily in smaller towns and rural, and in urban to a lesser extent," Banerjee said.

He was responding to a query on how GST 2.0 impacted demand and overall growth in tyre offtake.

Being "a structural change", GST rate reduction "will structurally impact demand as we go (along)" and there won't be a sudden spurt in demand.

When asked about the third quarter, Banerjee said,"This quarter is actually a little bit of a down season, because of December, which is cold weather, and parts of North and East India have demand contraction. Our strong season is April, May, June, which is the summer season." While the festive season has no impact on the tyre industry, he said,"the GST reduction over a period of time should do good for demand." Growth in supplies to automakers (OEMs) should come along, he said, adding in segments like passenger cars which have not grown, the "outlook has changed" and even medium and heavy commercial vehicles are witnessing growth again.

In the second quarter ended September 30, 2025 CEAT had reported a 54 per cent rise in consolidated net profit to Rs 186 crore as against Rs 121 crore in the same period last fiscal. Its revenue from operations rose to Rs 3,773 crore from Rs 3,304 crore in the year-ago period Banerjee pointed out that uncertainties due to the current global geopolitical situation and US tariffs are concerns going forward. PTI RKL ANU