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New Indian Express
30-04-2025
- Automotive
- New Indian Express
CEAT targets double-digit growth in FY26; Plans ₹1,000 crore capex
Despite macroeconomic and global challenges affecting the tyre industry, India's leading tyre manufacturer CEAT Ltd expects a double-digit growth in revenue in FY2025-26. 'In the fiscal and the quarter (Q4FY25) gone by, we delivered double-digit growth. We would have grown higher than the industry in FY25. While there are some macroeconomic challenges like the US tariff, we are again targeting double-digit growth in FY26,' Kumar Subbiah, CFO of CEAT, told The New Indian Express . The company reported a 14.3% year-on-year rise in Q4 revenue to ₹3,420.6 crore, up from ₹2,991.9 crore in the same quarter last year. However, net profit declined 8.4% to ₹99.5 crore compared to ₹108.6 crore in Q4 FY24. Despite this, CEAT's shares surged 8% on Wednesday, reflecting investor optimism. Subbiah highlighted strong growth in the replacement market (55% of revenue) and international business (20% of revenue) last fiscal. The company aims to increase its overseas revenue share to 25% in the next two years. For FY26, CEAT has earmarked ₹900-1,000 crore in capital expenditure, primarily for expanding passenger car tyre and truck/bus radial tyre capacities. This follows last year's capex of ₹946 crore. On US tariff concerns, Subbiah noted that CEAT's exposure to the US market is below 5%, minimizing potential risks. However, he cautioned that the industry must monitor whether China increases tyre dumping in global markets. 'In India, we have antidumping duty, particularly in the truck and bus radial category. As far as the Indian market is concerned, we do not see a threat of dumping. However, if Chinese tyres flood into other markets where we are also competing, then we will have to assess the impact,' he said. Talking about softening raw material prices, the CFO said that crude oil prices are currently hovering at about $65 level and international natural rubber prices, even though higher than last year, has seen a correction of about 10% in recent months. 'The impact of softening raw material prices may be seen in the coming months,' he stated.
Business Standard
30-04-2025
- Business
- Business Standard
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 companys 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.
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Business Standard
29-04-2025
- Automotive
- Business Standard
Ceat Q4 results: Net profit falls 3% to Rs 99 cr; revenue at Rs 3,421 cr
Tyre maker Ceat on Tuesday said its consolidated net profit declined by 3 per cent to Rs 99 crore for the fourth quarter ended March 31, 2025. The company had reported a net profit of Rs 102 crore in the January-March quarter of 2023-24. Its revenue from operations rose to Rs 3,421 crore in the fourth quarter compared to Rs 2,992 crore in the year-ago period, Ceat Ltd said in a regulatory filing. For the year ended March 2025, the company said its net profit declined 26 per cent to Rs 471 crore against Rs 635 crore. The revenue from operations rose to Rs 13,218 crore from Rs 11,943 crore in FY24. "Our operating margins improved in Q4 by over 120bps, largely driven by favourable revenue mix and result of strong cost controls across the value chain," Ceat CFO Kumar Subbiah said. The company incurred capex of Rs 946 crore during the year largely for capacity additions that would prepare it well to deliver growth plans in FY26, he added. "During the quarter, we incurred Rs 37 crore 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," Subbiah said. The company said its board has approved a dividend of Rs 30 (300 per cent) per share for FY24-25. Shares of the company on Tuesday ended 0.48 per cent up at Rs 3,061.40 apiece on BSE.
