Latest news with #Subbiah
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.
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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.
Time of India
28-04-2025
- Business
- Time of India
CG Power's turnaround: A strategic rescue for India's critical infra, emerging technology sectors
Just a few years ago, CG Power and Industrial Solutions was a cautionary tale in India's corporate landscape. Once a trusted name in industrial manufacturing—power equipment, transformers, and rail systems—the company spiraled into disarray following a 2019 financial scandal that exposed massive irregularities. With liabilities understated and assets overstated by thousands of crores, CG Power teetered on the edge of collapse. This was not merely the story of a failing enterprise; it was a matter of national importance. The potential foreign acquisition of CG Power posed serious concerns for India's critical infrastructure security. By 2020, CG Power was on the verge of being dismantled. Foreign interest in distressed Indian industrial assets was not uncommon—particularly from Chinese and European players. Industry observers noted keen interest from entities such as China XD Group and Siemens, both eyeing strategic footholds in India's infrastructure and power sectors. CG Power's global presence and technical expertise in transformers and railway electrification made it a prime target for acquisition. This is where the intervention by Tube Investments of India (TII) became transformational—not just for the company, but for the nation. In November 2020, TII acquired a 56.6% stake in CG Power for ₹700 crore. Though not the highest bid in absolute terms, TII's credibility, operational experience, and India-centric revival plan proved decisive. Their acquisition narrative was anchored in rebuilding and safeguarding strategic industrial capabilities, rather than short-term asset extraction. Under the quiet yet determined leadership of TII's Executive Vice Chairman, Vellayan Subbiah , the revival effort began. Subbiah's strategy was deliberate: restore institutional trust, fix the balance sheet, and reinvigorate operational strength with a long-term view. The financial clean-up was swift. With CG Power burdened by over ₹2,100 crore in debt, TII orchestrated a one-time settlement with 14 banks—₹1,100 crore was written off, ₹200 crore restructured, and ₹650 crore infused as fresh equity. Property monetization efforts filled the gap. By 2022, CG Power had become debt-free—an extraordinary pivot from near insolvency. Operationally, the turnaround was just as striking. The motors and railway businesses achieved record sales, and the transformer division revived with a swelling order book—₹3,686 crore initially, growing to ₹7,054 crore by Q1 of FY 2024-25. Profitability followed, and so did market validation, with CG Power's stock surging over 90% in 2024. However, what truly redefined CG Power's trajectory was its strategic pivot to future technologies. In March 2024, CG Power announced its entry into the semiconductor sector, partnering with Japan's Renesas Electronics and Thailand's Stars Microelectronics to establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat. With a ₹7,600 crore investment and a 92% controlling stake in the JV, CG Power signaled that it was no longer just an industrial legacy player—it was becoming a serious participant in the high-tech manufacturing ecosystem critical for India's ambitions of technological self-reliance. The momentum continued. In October 2024, CG Power acquired the radio frequency (RF) components business of Renesas Electronics America for $36 million, bringing in crucial intellectual property, engineering talent, and design capabilities. These moves firmly embedded CG Power within the broader semiconductor value chain, a strategic sector India is aggressively nurturing to reduce external dependencies in electronics and advanced manufacturing. Today, CG Power's transformation is more than an inspiring corporate turnaround—it is a case study in tech sovereignty, industrial resilience, and strategic national interest. Had TII not intervened, CG Power could have easily become a satellite entity within a foreign conglomerate's Indian portfolio, risking domestic control over key infrastructure systems and future technologies. Such a scenario would have had deep, lasting implications for supply chain autonomy, technology access, and national security. Instead, CG Power stands rejuvenated—playing a critical role not just in India's infrastructure rebuilding, but in its emerging tech economy. Its journey underscores the power of timely domestic capital intervention and strategic vision in shaping India's future industrial and technological landscape.
