New Delhi, May 5 (Agency) CEAT’s consolidated net profit surged 195.9% to Rs 153.02 crore on 45.5% surge in net sales to Rs 2,289.72 crore in Q4 FY21 over Q4 FY20. The board recommended a final dividend of Rs 18 (i.e. 180%) per equity share of face value of Rs 10 each fully paid up, for the financial year ended 31 March 2021, subject to approval of the members at ensuing Annual General Meeting, which will be paid/dispatched to the shareholders within 30 days of its declaration thereat. The Q4 result was announced during market hours today, 5 May 2021.
The company also intimated that an additional investment by the way of capex of approx. Rs 1,205 crore to enhance capacity of Truck Bus Radial (TBR) at the Chennai Greenfield plant of the company, in two phases, up to 190 tons per day (TPD) capacity over a period of next four years. The investment is proposed to be funded through a mix of debt and internal accruals. On a consolidated basis, gross revenues jumped 34% to Rs 961.50 crore in Q4 FY21 over Rs 718.30 crore in Q4 FY20. Gross margin stood at 42% in Q4 FY21 as against 45.6% in Q4 FY20. Consolidated EBITDA surged 32% to Rs 268.70 crore in Q4 FY21 as compared to Rs 202.90 crore in Q4 FY20. Consolidated EBITDA margin was at 11.7% in Q4 FY21 from 12.9% in Q4 FY20. The debt-to-equity ratio stood at 0.42x in Q4 FY21 as compared to 0.66x in Q4 FY20.
Commenting on the results as well as the outlook of the business, Anant Goenka, the managing director (MD) of CEAT, has said that: “It has been a very satisfactory year with record sales and profitability especially in a year that has been marked by uncertainty due to COVID-19. We gained market share in PCR and TBR segments. Encouraged by buoyancy in demand, we added new capacity in the TBR segment. Towards the latter part of the year due to increase in commodity prices, there has been some erosion in gross margins which prompted us to take a small increase in price. Frequent lockdowns and high commodity prices remain an industry-wide concern on OEM and retail demand. The vaccination drive gives us reason to remain bullish on the industry from a medium to longer term perspective.” CEAT is a tyre manufacturer and has a strong presence in global markets. Shares of CEAT slipped 0.09% to end at Rs 1,377.65 on BSE. The scrip traded in the range of Rs 1,350.70 to Rs 1,417 so far throughout the day.