Tyremaker CEAT Ltd reported a 22 per cent dip in net profit with ₹102 crore for the quarter that ended in March against ₹132 crore reported during the same quarter last year. The company reported a 43 per cent dip in profit with ₹182 crore registered in the December quarter. 

The board of directors all approved a dividend of ₹30 that is 300 per cent (Three Hundred per cent) per equity share of the face value of ₹10 each fully paid up, for the financial year ended March 31, 2024. 

The Mumbai-headquartered company’s revenue from operation grew by 4 per cent with ₹2,991 crore in March opposed to ₹2,874 crore during the same quarter last year. The company witnessed a 0.94 per cent increase in revenue from the December quarter with ₹2,963 crore.

“The company ended the year on a positive note, we saw a 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 a full-year basis and expect the positive momentum in Q1FY25. We have achieved commendable growth, largely attributable to share gain in passenger categories both in 2W and 4W and substantial expansion within the export segment. Overall, our profits & margins grew significantly during the year. The operating margins for the quarter include additional provisions made towards Extended Producer’s Responsibility (EPR) related requirements imposed on the Tyre Industry by the Government of India,” said Arnab Banerjee, MD and CEO, CEAT Limited.

The company registered a growth of 20 per cent year-on-year in its exports. 

Debt reduction

CEAT Ltd has managed to reduce its overall debt year-on-year. 

“As a part of our continuous effort to bring efficiencies in cashflow, it has helped us reduce our consolidated gross debt by approximately ₹100 crore in the quarter. The actual overall capex for the year was close to approximately ₹860 crore in line with our plan that we managed to fund through internal accruals. It has been a gratifying year overall, marked by positive free cash flow, a significant reduction in debt, improvement in operating margins and the maintenance of healthy balance sheet leverage ratios,” said Kumar Subbiah, CFO of CEAT Limited. 

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