 "tyre industry")
Goodyear India stock slips: Tyre manufacturer Goodyear shares have dropped as much as 5.78 per cent to hit an intraday low of Rs 1,140 per share, on Friday, after the company announced a weak set of March quarter (Q4FY24) results.
Goodyear India’s net loss stood at Rs 4.2 crore in the March quarter of financial year 2024 (Q4FY24), as opposed to net profit of Rs 33.6 crore in the same quarter a year ago (Q4FY23).
The tyre maker’s revenue slipped 15.6 per cent on a year-on-year (Y-o-Y) basis to Rs 550.5 crore in Q4FY24, from Rs 652.6 crore in Q4FY23.
The company’s earnings before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit, plummeted 90.5 per cent on a Y-oY basis to Rs 5.4 crore in Q4FY24, from Rs 56.8 crore in the same previous fiscal year.
Ebitda margin, meanwhile, stood at 0.98 per cent in Q4FY24, as opposed to 8.70 per cent in Q4FY23.
The board of directors have recommended a final dividend of Rs 15 per equity share of Rs 10 each, for the FY24. “The Final Dividend, if approved by the members, at the forthcoming Annual General Meeting scheduled to be held on Tuesday, July 30, 2024 shall be paid within the statutory time limit to those members whose names would appear in the Register of members on Tuesday, July 23, 2024,” said Goodyear in an exchange filing.
Sandeep Mahajan, chairman & managing director of Goodyear India said, "We have witnessed demand pressure in both farm and passenger car tyres due to subdued industry, predominantly in Farm due to downturn in tractor Industry which has shown a double-digit de-growth during the quarter. Our company is one of the prominent players with a substantial share of business with farm OEMs, which has remained under pressure due to the cyclical nature of the industry. Rural demand has remained soft as well which has further impacted our farm replacement business. Profitability has been impacted due to lower sales volumes and resultant production cut.”
Mahajan further said, “The Ministry of Environment, Forest and Climate change notifies Extended Producer Responsibility (EPR) rules for waste tyres applicable to tyre manufacturers amongst others. The company has a present legal obligation to fulfil the liability of FY 2022-23 and FY 2023-24 arising from the said rules. Accordingly, the company has provided Rs14 crore in the current quarter which is a one-time charge and has further impacted the profitability of the quarter."
At 12:53 PM, shares of Goodyear India were trading 5.16 per cent lower at Rs 1,147.50 per share. By comparison, S&P BSE Sensex was trading marginally (0.03 per cent) higher at 75,414.34 levels.
