CEAT declined 3.87% to Rs 2,519.35 after the company's consolidated net profit fell 18.80% to Rs 108.56 crore in Q4 FY24 as compared net to Rs 133.70 crore posted in corresponding quarter last year.
Revenue from operations increased 4.07% to Rs 2,991.85 crore in Q4 FY24 as against revenue of Rs 2,874.82 crore posted in Q4 FY23, replacement segment saw healthy volume growth while OEM volumes marginally declined.Profit before exceptional items and tax grew by 10.39% year on year to Rs 196.86 crore in the quarter ended 31 March 2024. The company reported exceptional items of Rs 58.17 crore in Q4 FY24.
During the quarter, EBITDA was at Rs 400.9 crore as compared with Rs 375.5 crore in Q4 FY23. EBITDA margin expanded by 34 bps to 13.4% in Q4 FY24 as against 13.1% in Q4 FY23, YoY margin improvement led by raw material (RM) cost reduction and operational efficiencies.
In Q4 FY24, capex was approximately Rs 260 crore.
On full year basis, the company reported a consolidated net profit of Rs 642.65 crore in FY24, steeply higher than Rs 186.17 crore posted in FY23. Revenue from operations grew by 5.55% year on year to Rs 11,943.48 crore in FY24.
Commenting on the results as well as the outlook of the business, Arnab Banerjee, MD & CEO, CEAT said, The company ended the year on a positive note, we 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 full year basis and expect the positive momentum in Q1FY25.
We have achieved commendable growth, largely attributable to share gain 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 margin for the quarter includes additional provision made towards Extended Producers Responsibility (EPR) related requirement imposed on Tyre Industry by the Government of India. On a standalone basis, the Companys revenue stood at Rs 2,979.2 crore and EBITDA margin stood at 13.3%, a contraction of 89 bps vs Q3 FY23-24. Net profit stood at Rs. 119.1crore."
Kumar Subbiah, CFO of CEAT, said, As part of our continuous effort to bring efficiencies in cashflow, 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, significant reduction in debt, improvement in operating margins and the maintenance of healthy balance sheet leverage ratios.
Meanwhile, The company's board has recommended a final dividend of Rs 30 per share, which will be approved by shareholders at the upcoming annual general meeting and will be paid within 30 days.
CEAT, the flagship company of RPG Enterprises, is one of India's leading tyre manufacturers and has a strong presence in global markets. CEAT produces more than 41 million high-performance tyres, catering to various segments like 2-3 wheelers, passenger and utility vehicles, commercial vehicles and off-highway vehicles.
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