Shares of Ceat traded 4 per cent up at a fresh 52-week high of Rs. 1,322 on the BSE in Wednesday's early morning trade after the company reported Ebitda (earnings before interest, taxes, depreciation, and amortization) margin expansion of 460 basis points (bps) at 15.3 per cent for the quarter ended December 2020 (Q3FY21), over the previous year quarter. The stock of the auto tyres & rubber Products Company has surged 10 per cent in the past two trading days, post the Q3 results.

The company's consolidated net profit more-than-doubled to Rs. 132 crore in Q3FY21 from Rs. 53 crore in Q3FY20. Net revenue from operations grew by 26 per cent at Rs. 2,221 crore against Rs. 1,762 crore in the corresponding quarter of previous fiscal.

This quarter's growth has been achieved on the back of new capacities across segments, particularly passenger car, two-wheeler and farm segments. The replacement market has been buoyant of consumer preference in personal mobility and strong demand.

The management is confident of maintaining strong growth levels over the next few months. However, there is expected to be some margin pressure in the next quarter due to increasing raw material prices, it said.

At 09:33 am, the stock was trading 3 per cent higher at Rs. 1,307 on the BSE, as compared to 0.24 per cent gain in the S&P BSE Sensex. A combined 530,000 equity shares have changed hands on the counter on the NSE and BSE, so far.