Ceat rises after Q4 PAT jumps 2% QoQ to Rs 99 cr; declares dividend of Rs 30/sh

Ceat rallied 5.82% to Rs 3,239.50 after the company's net profit advanced 2.45% to Rs 99.49 crore on a 3.66% increase in revenue to Rs 3,420.62 crore in Q4 FY25 over Q3 FY25.

However, on a year-on-year basis, the company's consolidated net profit declined 8.35% to Rs 99.49 crore on a 14.33% increase in revenue to Rs 3,420.62 crore in Q4 FY25 over Q4 FY24.

The company reported profit before exceptional items and tax of Rs 165.88 crore in Q4 FY25, compared to Rs 196.86 crore recorded in the same period a year ago. The firm reported exceptional items of Rs 37.04 crore during the quarter.

EBITDA in Q4 FY25 slipped 1.8% to Rs 393.5 crore compared to Rs 400.9 crore reported in Q4 FY24. EBITDA margin reduced to 11.5% during the quarter as against 13.4% in the same quarter the previous year; margins were impacted by a higher RM basket.

In Q4 FY25, capital expenditure (capex) amounted to approximately Rs 235 crore.

On the margins front, the company's operating margin reduced to 11.51% in Q4 FY25, compared with 13.40% recorded in Q4 FY24. Net profit margin declined to 2.89% in Q4 FY25 from 3.42% registered in Q4 FY24.

Kumar Subbiah, CFO of CEAT, said, "Our operating margins improved in Q4 by over 120 bps, largely driven by favorable revenue mix and the result of strong cost controls across the value chain. We incurred capex of Rs 946 crore during the year, largely in capacity additions that would prepare us well to deliver our growth plans in FY 26. During the quarter, we incurred Rs 37 crores towards voluntary separation of employees in one of our high-cost factories as part of our continuous effort to keep our manufacturing units cost competitive."

Meanwhile, the board of directors at its meeting held today has approved a dividend of Rs 30 per equity share for FY24-25. This is subject to the approval of shareholders.

CEAT, the flagship company of RPG Enterprises, is one of India's leading tire manufacturers and has a strong presence in global markets. CEAT produces more than 41 million high-performance tires, catering to various segments like 2-wheelers, passenger and utility vehicles, commercial vehicles, and off-highway vehicles.

Powered by Capital Market - Live News