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  4. CEAT falls 5% after 23% decline in Q4 consol PAT at ₹102.3 crore

CEAT falls 5% after 23% decline in Q4 consol PAT at ₹102.3 crore

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2 min read • Updated: May 3, 2024, 10:49 AM

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Summary

CEAT registered a 4.1% year-on-year (YoY) rise in its consolidated operating revenue at ₹2,991.9 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 6.8% to ₹400.9 crore during the quarter while the EBITDA margin improved marginally to 13.4%.

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Ceat tyres falls 5% on decline in bottomline

Shares of CEAT, an RPG Group company, fell over 5% on Friday after the company announced a 22.8% decline in its consolidated net profit at ₹102.3 crore for the fourth quarter.

The company registered a 4.1% year-on-year (YoY) rise in its consolidated operating revenue at ₹2,991.9 crore.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 6.8% to ₹400.9 crore during the quarter while the EBITDA margin improved marginally to 13.4%.

Arnab Banerjee, MD & CEO at CEAT said the company saw recovery in volumes in the second half of the quarter and expects the positive momentum in the first quarter of the current fiscal year.

“We have achieved commendable growth, largely attributable to share gain in passenger categories both in 2-wheelers and 4-wheelers and substantial expansion within the export segment. Overall, our profits and margins grew significantly during the year. The operating margin for the quarter includes additional provision made towards extended producers’ responsibility-related requirement imposed on the tyre industry by the government,” Banerjee said.

On a standalone basis, the company’s revenue increased 4.1% to ₹2,979.2 crore. EBITDA increased 6.5% to ₹394.8 crore during the quarter. Net profit declined 9.8% to ₹119.1crore. The board of directors has approved a final dividend of ₹30 per share.

Kumar Subbiah, CFO at CEAT pointed out that the company’s consolidated gross debt fell by approximately ₹100 crore in the quarter, supported by improved operational performance. “The actual overall capex for the year was close to approx ₹860 crore, in line with our plan that we managed to fund through internal accruals. It has been a gratifying year overall, marked by positive free cash flow, a significant reduction in debt, improvement in operating margins, and the maintenance of healthy balance sheet leverage ratios,” he said.

Shares of the company have gained over 2% since the beginning of the year. The stock has risen over 51% in the last one year.