Goodyear India jumps after Q4 PAT soars to Rs 43.22 cr

Goodyear India jumped 5.78% to Rs 984 after the company's net profit surged 240.31% to Rs 43.22 crore on 51.84% jump in revenue from operations to Rs 569.34 crore in Q4 March 2021 over Q4 March 2020.

The revenue was boosted by robust farm demand, distribution expansion initiatives in consumer replacement business and base impact of COVID-19 in March 2020. The improvement in PAT was due to higher volumes, increased factory utilization and cost efficiencies.

Profit before tax soared 238.27% to Rs 58.42 crore in Q4 FY21 as against Rs 17.27 crore in Q4 FY20. The volumes improved throughout the quarter driven by record consumer replacement volume and a robust rural demand.

During the financial year, Goodyear India's net profit climbed 53.37% to Rs 136.26 crore on 2.64% rise in revenue from operations to Rs 1,791.71 crore in FY 2021 over FY 2020. The impact of lower volume due to COVID-19 was offset by cost efficiencies and favorable mix.

As of 31 March 2021, Goodyear India had a cash & bank balance of Rs 597 crore. In comparison, the company had Rs 546 crore cash as on 31 March 2020.

Meanwhile, the board has declared a final dividend of Rs 18 per equity share for FY 2020-21. The board has also approved a special dividend of Rs 80 per equity share.

Sandeep Mahajan, chairman and managing director of Goodyear India, stated: "We benefited from our ongoing enhancement of our consumer replacement distribution network, particularly in rural markets where we are creating synergies with our farm business. Our distribution initiatives are strengthening our position in the market and helping us build a sustainable business. Our results also reflect increasing momentum in the farm segment driven by a resurgence in rural demand and our excellent products and customer service. While we expect to continue advancing our strategic priorities in fiscal 2022, safeguarding our associates and helping our communities overcome COVID-19 remain our top priorities."

Goodyear India is engaged in the manufacturing and trading of tires, tubes and flaps.

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