Ceat Ltd Q4 PAT falls -83% to Rs25.25cr on spike in raw material costs and working capital overhang

6 May 2022 , 06:07 PM

Ceat Ltd reported 13.2% growth in total revenues yoy for the Mar-22 quarter on consolidated basis at Rs2,591.99cr. On a sequential basis, revenues were higher for the quarter by 7.41%.

For the full year FY22, the revenues were higher by 23.04% at Rs9,363cr. For the quarter, Ceat saw the debtor turnover ratio and the inventory turnover ratio drop marginally while the debt equity ratio went up from 0.43 to 0.64.

The company may have to take losses in its Sri Lanka based business due to the worsening economic situation.

The consolidated net profit for Q4 was down -83.5% at Rs25.25cr while it turned around on a sequential basis. The sharp fall in profits in the quarter was an outcome of a spike in material costs, especially crude and carbon black.

In addition, negative trends in working capital also impacted profits. Net cash from operations for FY2 halved yoy. Net margins stood at 0.97% in Mar-22 quarter compared to 6.67% in Mar-21. NPM was higher sequentially compared to -0.83% in Q3. There is a Rs252cr CCI penalty pending.

Financial highlights for Mar-22 compared yoy and sequentially

	Ceat Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 2,591.99	₹ 2,289.72	13.20%	₹ 2,413.27	7.41%
Net Profit (Rs cr)	₹ 25.25	₹ 152.80	-83.48%	₹ -20.01	-226.19%
Diluted EPS (Rs)	₹ 6.24	₹ 37.77		₹ -4.95
Net Margins	0.97%	6.67%		-0.83%