CEAT Q4 results: Net profit falls 8.36% to ₹99.49 cr, revenue up 14.3%

RPG Group-owned tyre company CEAT on Tuesday posted an 8.36 per cent decline in profit after tax (PAT) for the fourth quarter (Q4) of 2024-25 (FY25), while its consolidated revenue from operations grew by 14.33 per cent during the period. The consolidated profit after tax in Q4FY25 stood at ₹99.49 crore, while the revenue from operations came in at ₹3,420.62 crore.

 

The net profit for the company was impacted due to lower operating margins and an increase in raw material cost.

 

Sequentially, the revenue from operations rose by 3.66 per cent with the PAT also growing by 2.45 per cent.

 

For FY25, CEAT’s revenue from operations grew by 10.7 per cent, reaching ₹13,217.87 crore, an increase from ₹11,943.48 crore in FY24. Net profit for FY25, however, declined by 26.4 per cent, falling to ₹472.64 crore compared to ₹642.65 crore in FY24.

 

Commenting on the results, Arnab Banerjee, managing director and chief executive officer, CEAT, said, “We managed to deliver improvement in margins in Q4 versus Q3. We crossed an important milestone of crossing ₹13,000 crore of revenue during the year. The replacement segment delivered strong growth consistently during the year and the OEM business delivered strong performance in Q4.”

 

CEAT took selective price increases during the quarter that offset part of the cost impact caused due to increased rubber prices.

 

Commenting on the price hike, Kumar Subbiah, chief financial officer of CEAT, said, “Our year-on-year profit declined marginally due to lower operating margins, largely driven by an increase in raw material costs over the past 12 months. While we mitigated part of it through price hikes—especially in the passenger car and two-wheeler segments—some impact still remains. We’re also working on cost efficiency measures across the value chain to restore gross margins, and any further price increases will depend on how raw material trends evolve.”

 

CEAT incurred a capital expenditure of ₹946 crore in FY25, primarily towards capacity additions aimed at supporting its growth plans for FY26. Additionally, during the fourth quarter, the company spent ₹37 crore on a voluntary separation scheme at one of its high-cost manufacturing units as part of ongoing efforts to enhance cost competitiveness.

 

The result was announced after market hours. On Wednesday, shares of the company closed at ₹3,061.40, up 0.48 per cent.