CEAT reported consolidated net profit of Rs 35.39 crore in Q3 FY23 as compared with net loss of Rs 20.01 crore in Q3 FY22
Net sales rose 13% to Rs 2,727.20 crore in Q3 FY23 as against Rs 2,413.27 crore in Q3 FY22.
Profit before exceptional item stood at Rs 56.46 crore in Q3 FY23 as compared with loss before exceptional items of Rs 26.04 crore in Q3 FY22. The company had introduced a voluntary retirement scheme (VRS) for its employees. The compensation in respect of employees who opted for VRS aggregated nil for the quarter as against with Rs 6.52 crore for the quarter ended 31 December 2021, Rs 23.17 crore for the quarter ended 30 September 2022 has been disclosed as an exceptional item.
Further, the exchange loss towards dividend and other receivables from its subsidiary / joint ventures in Sri Lanka on account of devaluation in Sri lanka currency is reflected as an exceptional item amounting to Rs 0.45 crore for the quarter ended December 31, 2022, Rs 0.53 crore for the quarter ended September 30, 2022, and Rs 5.88 lakhs for the year ended March 31, 2022.
Total expense rose 9.43% to Rs 2,672.76 crore in Q3 FY23 as compared with Rs 2,442.48 crore in Q3 FY22. Employee benefit expense stood at Rs 181.84 crore (up 9% YoY), Finance cost was at Rs 65.7 crore (up 13.8% YoY).
EBITDA rose 13.6% to Rs 231.4 crore in Q3 FY23 as compared with Rs 143 crore in Q3 FY22. EBITDA margin stood at 8.5% in Q3 FY23 as against 5.9% in Q3 FY22.
Anant Goenka, managing director, CEAT, said, Our margins continue to improve as a result of the cooling commodity prices. Growth is led by domestic demand as we remain cautious about international markets that are getting impacted by recessionary trends.
Further he stated that going forward, our outlook for Q4 is positive. We have the capacities available to cater to a growing market demand. Our factory at Halol has recently been certified as a Lighthouse Factory by the World Economic Forum at Davos for application of Industry 4.0 technologies. This is a testament to our digital capabilities in driving manufacturing & supply chain efficiencies, better product quality and customer service.
On a standalone basis, the company's revenue stood at Rs 2,711 crore and EBITDA margin stood at 8.7%, an expansion of 160 bps versus Q2 FY22-23. Net profit stood at Rs 42 crore.
Kumar Subbiah, chief financial officer of CEAT, said, Our standalone EBITDA margins improved during the quarter by 160 bps over the previous quarter largely due to lower input costs and tight control over operating expenses. We brought down our overall inventories by Rs. 280 crore, which helped in bringing efficiencies in operating cashflows and minimising our borrowings. We intend to maintain our capex for the year at around Rs. 900 crore in line with our annual plan. With the correction in commodity costs, the margin outlook is positive for the next quarter.
CEAT is engaged in leading tyre manufacture with global presence, publishes yearly reports that detail both financial and non-financial performance.
The scrip tumbled 4% to currently trade at Rs 1521.25 on the BSE.
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