Ceat net profit surges in FY24

Indian tyre maker Ceat Limited has published its audited results for the three months ending 31 March 2024, the final quarter of its financial year 2024. On a consolidated basis, the company achieved revenue of Rs 299.19 billion (£2.86 billion). EBITDA margin stood at 13.4 per cent, a contraction of 97 bps versus the third quarter. Net profit amounted to Rs 10.23 billion (£97.89 million).
Net revenue for the full financial year FY24 was Rs 1,194.35 billion (£11.43 billion), up 5.6 per cent year-on-year. At 14.0 per cent, EBITDA increased by 533 bps compared with FY23. Net profit rose 248.3 per cent year-on-year, to Rs 63.53 billion (£607.94 million).
“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,” states Arnab Banerjee, managing director and chief executive officer of Ceat. “We have achieved commendable growth, largely attributable to share gain in passenger categories both in 2W and 4W (two-wheeler and four-wheeler) and substantial expansion within the export segment. Overall, our profits & margins grew significantly during the year. The operating margins for the quarter includes additional provision made towards Extended Producers Responsibility (EPR) related requirement imposed on (the) tyre industry by the Government of India.”
Standalone result
On a standalone basis, Ceat’s revenue stood at Rs 297.92 billion (£2.85 billion), with EBITDA margin contracting 89 bps to 13.3 per cent compared with Q3 FY24. Net profit amounted to Rs 11.91 billion (£113.97 million).
The company’s Board of Directors has approved a dividend payment of 300 per cent on equity shares for FY23-24. This is subject to approval of shareholders.
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