Ceat reported a 22.8% decline in its consolidated net profit, which declined to Rs 102.27 crore in Q4 FY24 as against Rs 132.42 crore recorded in Q4 FY23.
However, total income grew by 4% year on year to Rs 2.99,4.2 crore during the quarter. EBITDA margin stood at 13.4% in Q4, a contraction of 97 bps as compared to Q3 FY23–24.
According to Arnab Banerjee, MD & CEO, Ceat, the company ended the year on a positive note, saw recovery in volumes in the second half of the quarter in replacement and international markets with stable margins for the quarter and significant improvement in the margins on a full-year basis, and expects positive momentum in Q1 FY25.
"We have achieved commendable growth, largely attributable to share gains in passenger categories both in 2W and 4W and substantial expansion within the export segment. Overall, our profits & margins grew significantly during the year. The operating margins for the quarter include additional provision made towards Extended Producers Responsibility (EPR) related requirement imposed on Tyre Industry by the Government of India," he added.
On a standalone basis, the company’s revenue stood at Rs. 2,979.2 crore and its EBITDA margin stood at 13.3%, a contraction of 89 bps vs. Q3 FY23-24.
Kumar Subbiah, CFO of CEAT Limited, said, “As part of our continuous effort to bring efficiencies in cash flow, it has helped us reduce our consolidated gross debt by approximately Rs 100 crore in the quarter, supported by improved operational performance. The actual overall capex for the year was close to approx. Rs 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.”