CEAT's net profit in March quarter down y-o-y by 22.7%

3 May 2024 , 02:07 PM

CEAT Ltd reported a 22.7% year-on-year (YoY) decline in net profit for the fourth quarter ending March 31, 2024, amounting to ₹102.3 Crore compared to ₹132.4 Crore in the same period last year, as disclosed in a regulatory filing.

Despite the decrease in net profit, the company witnessed a 4.1% increase in revenue from operations, reaching ₹2,991.9 Crore, up from ₹2,874.8 Crore in the corresponding period of the previous fiscal year.

Operating profit (EBITDA) for the fourth quarter of the fiscal year 2023-24 rose by 6.5% to ₹391.7 Crore, compared to ₹367.8 Crore in the same period last year, with an EBITDA margin of 13.1%.

CEAT shares were trading at ₹2518.95 at the time of reporting, marking a 3.94% decrease from the previous close. Over the past year, the stock has gained 53.75%, with a 3.62% increase since the beginning of the current year.

Arnab Banerjee, MD and CEO of CEAT, expressed optimism about the company’s performance, noting a recovery in volumes in the replacement and international markets during the second half of the quarter, alongside stable margins for the quarter and significant improvement in full-year margins. He anticipates this positive momentum to continue into Q1 FY25.

Banerjee attributed the commendable growth to market share gains in passenger categories for both two-wheelers and four-wheelers, as well as substantial expansion within the export segment, resulting in significant profit and margin growth for the year.

The board has recommended a final dividend of ₹30 per equity share of face value ₹10 each fully paid up for the financial year ending March 31, 2024, subject to approval at the upcoming annual general meeting.

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