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CEAT Q4 PAT declines 20% to Rs 52 cr

CEAT's consolidated net profit declined 19.6% to Rs 51.72 crore on 10.6% fall in net sales to Rs 1573.41 crore in Q4 March 2020 over Q4 March 2019.

Consolidated profit before tax (PBT) stood at Rs 63.07 crore in Q4 March 2020, declining 19.1% from Rs 78 crore posted in Q4 March 2019. Total tax expenses declined 17% to Rs 1135 crore in Q4 March 2020 over Q4 March 2019.

Consolidated EBITDA stood at Rs 203 crore in Q4 March 2020, rising 22.29% from Rs 166 crore in the same period last year. EBITDA margin rose to 12.9% in Q4 March 2020 from 9.4% in Q4 March 2019.

The company said it has made provisions for unusable semi finished inventory and raw materials aggregating to Rs 13.27 crore due to abrupt stoppage of production facilities. The company further said it has not capitalized further borrowing cost due to temporary suspension related to ongoing capital project, contract manpower cost and export detention aggregating to Rs 2.67 crore. These costs have been disclosed as exception items.

Commenting on company's performance, Anant Goenka, managing director said, "We have focused on cash flows and cost control during these times. In Q4, our EBITDA margins have shown improvement despite the disruption caused by COVID-19. We have resumed operations at most of our factories and with the ease in restrictions and lockdown, we are gradually seeing a pick up in demand as well."

Shares of CEAT were up 4.04% at Rs 802.25 on BSE. The result was announced after market hours yesterday, 28 May 2020.

CEAT, the flagship company of RPG Enterprises, is a tyre manufacturers and has a strong presence in global markets.

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