Ceat slips after weak Q4 outcome

6 May 2022 , 10:28 AM

Profit before tax tumbled 81% to Rs 26.41 crore in Q4 FY22 from Rs 142.06 crore posted in Q4 FY21. EBITDA declined 27% to Rs 195.2 crore while EBITDA margin slipped 420 basis points to 11.7% in Q4 FY22 over Q4 FY21. Profitability was dented after total expenses spiked 18.8% to Rs 2,410.37 Q4 FY22 over Q4 FY21.Cost of raw materials consumed rose 22.4% year on year to Rs 1,768.47 crore in Q4 FY22. On full year basis, the tyre maker reported an 83.5% decline in net profit to Rs 71.20 crore in financial year ended 2022 over financial year ended 2021. Net sales grew 23% to Rs 9,363.4 crore in FY22 over FY21. Commenting on the results and the outlook of the business, Anant Goenka, managing director of CEAT said, ?We are witnessing a recovery in the market, particularly in the replacement and commercial tyre categories. Our international business continues to outperform and we expect it to drive growth in the coming year as well. Margins, however, continue to be under pressure due to rising commodity prices, and other inflationary costs. I am hopeful with Covid restrictions easing in the country, an uptick in GST collections and an improved business sentiment we can expect a better FY23 for the business.? Kumar Subbiah, CFO of CEAT said, ?Our strong focus on cashflows and tight working capital management during the year has helped us to bring down our gross debt by Rs. 146 crore leading to improvement in our leverage ratios and stronger balance sheet.? The board recommended a final dividend of Rs 3 per equity share for the financial year ended 31 March 2022. CEAT, the flagship company of RPG Enterprises, is one of Indias leading tyre manufacturers and has a strong presence in global markets. CEAT produces over 15 million tyres a year and offers the widest range of tyres to all segments. Powered by Capital Market – Live News