CEAT shares plummet 9% after Q4 net profit dips 23% YoY

For the full year, net profit rose 245.20% to Rs 642.65 crore in the year ended March 2024 as against Rs 186.17 crore during the previous year ended March 2023. Revenue from operations rose 5.6% to Rs 11,943 crore in FY24 against Rs 11,315 crore in FY23.

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The company said its board approved a final dividend of Rs 30 per share of face value of Rs 10 for the financial year ended March 2024.

Debt declined to Rs Rs 16,30 crore as of Mar’24 (vs. Rs 1730 crore as of Dec’23, and Rs 2090 crore in Mar '23) due to healthy cash generation of Rs 100 and reduction in WC. Capex during the quarter stood at Rs 260 crore.

Kumar Subbiah, CFO of CEAT, said, “As part of our continuous effort to bring efficiencies in cashflow, it has helped us reduce our consolidated gross debt by approximately Rs 100 crores in the quarter, supported by improved operational performance. The actual overall capex for the year was close to approx. INR860 crores 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, significant reduction in debt, improvement in operating margins and the maintenance of healthy balance sheet leverage ratios.”

At 10:56 am, the stock was trading 4% lower at Rs 2,519 on the BSE. However, over the last six months, the stock has surged 18%, while it has rallied over 50% in the past one year.

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