In Short:
CEAT Ltd reported a 22% decrease in net profit for the quarter ending in March, with a dividend of ₹30 per share for the financial year that ended in March 2024. The company’s revenue from operations increased by 4%, and it also experienced a growth of 20% in exports. CEAT Ltd successfully reduced its overall debt by approximately ₹100 crore in the quarter.
CEAT Ltd: A Story of Challenges and Triumphs
Hey there, folks! Here’s a little update on the latest news from the world of tyremaker CEAT Ltd. So, it looks like the company’s net profit took a bit of a hit in the last quarter, dropping by 22 per cent to ₹102 crore compared to the same time last year when it was at ₹132 crore. Similar drop was seen in the December quarter, with a 43 per cent dip in profit reported.
Dividend Declaration
But hey, it’s not all bad news! The board of directors also approved a dividend of ₹30 per equity share of the face value of ₹10 each fully paid up, for the financial year ended March 31, 2024. That’s a whopping 300 per cent dividend, folks!
The revenue from operations showed a slight growth of 4 per cent in March, reaching ₹2,991 crore as compared to ₹2,874 crore in the same quarter last year. And there was a 0.94 per cent increase from the December quarter with ₹2,963 crore.
Arnab Banerjee, the MD and CEO of CEAT Limited, shared, “The company ended the year on a positive note, with recovery in volumes in the second half of the quarter in replacement and international markets. We’ve achieved commendable growth, especially in passenger categories for both 2W and 4W vehicles. Our profits and margins have grown significantly during the year.”
The company also noted a 20 per cent year-on-year growth in its exports. That’s some good news!
Debt Reduction
CEAT Ltd also managed to reduce its overall debt year-on-year. The CFO, Kumar Subbiah, mentioned, “We’ve been focusing on efficiency in cashflow, which helped us reduce our consolidated gross debt by approximately ₹100 crore in the quarter. We’ve had a gratifying year overall, marked by positive free cash flow, significant debt reduction, and healthy balance sheet leverage ratios.”
