CEAT Limited , a leading Indian tyre manufacturer, has announced its financial results for the fourth quarter of fiscal year 2024-25, showcasing robust revenue growth despite facing margin pressures.

Revenue Growth

CEAT reported a consolidated revenue of Rs. 3,420.60 crore for Q4 FY25, marking a significant 14.30% year-on-year increase. The company's performance was driven by strong volume growth in both the OEM (Original Equipment Manufacturer) and replacement segments.

Segment Performance

The replacement segment continued to deliver consistent growth throughout the year. In Q4, the OEM business showed particularly strong performance, contributing to the overall revenue increase.

Profit and Margins

Despite the revenue growth, CEAT faced some challenges in profitability:

• Net profit for Q4 FY25 stood at Rs. 98.70 crore, slightly down from Rs. 102.30 crore in the same quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin was 11.50%, showing a quarter-on-quarter improvement of 101 basis points but a year-on-year decline of 189 basis points.

Factors Affecting Performance

• Raw material costs remained relatively stable compared to the previous quarter, allowing for a 64 basis points expansion in gross margin on a quarter-on-quarter basis.
• However, the year-on-year margin contraction was attributed to an increase in the raw material basket compared to the previous year.

Financial Position

| Metric | Value | |:----------------------|:--------------|| | Debt | Rs. 1,928.00 crore | | Debt-to-Equity Ratio | 0.44x | | Debt-to-EBITDA Ratio | 1.29x | | Capital Expenditure | Rs. 235.00 crore |

Capital expenditure for the quarter was funded through internal accruals.

Management Commentary

Arnab Banerjee, MD & CEO of CEAT Limited, expressed satisfaction with the company's performance, stating, "It was a very satisfying top line performance for the quarter and overall, for the year as we managed to deliver a double-digit growth across all key categories and business verticals. We crossed an important milestone of crossing Rs 13,000 crores of revenue during the year."

Kumar Subbiah, CFO of CEAT Limited, highlighted the improvement in operating margins, noting, "Our operating margins improved in Q4 by over 120 bps, largely driven by favourable revenue mix and result of strong cost controls across the value chain."

Future Outlook

CEAT is looking forward to integrating the CAMSO compact construction business in the current year, which could potentially open up new growth opportunities for the company.

Dividend Announcement

The Board of Directors has approved a dividend of Rs. 30.00 per equity share (300%) for FY24-25, subject to shareholder approval.

Conclusion

While CEAT has demonstrated strong revenue growth and market performance in Q4 FY25, the company continues to navigate challenges related to profitability and margins. The management's focus on cost control and strategic initiatives, such as the CAMSO integration, may play crucial roles in shaping CEAT's future performance in the competitive tyre industry.

CEAT Limited , a leading Indian tyre manufacturer and flagship company of the RPG Group, has announced its financial results for the fourth quarter and full fiscal year ended March 31, 2025. The company reported robust top-line growth, crossing a significant revenue milestone while navigating challenges in profitability.

Q4 FY25 Highlights

• Consolidated revenue grew by 14.3% year-over-year to Rs 3,420.60 crore
• EBITDA margin stood at 11.5%, expanding 101 basis points quarter-on-quarter
• Net profit reached Rs 98.70 crore

Annual Performance FY25

• Full-year consolidated revenue surpassed Rs 13,000 crore, reaching Rs 13,217.90 crore
• EBITDA for FY25 was Rs 1,495.90 crore, with a margin of 11.3%
• Net profit for the year stood at Rs 471.40 crore

Key Developments

CEAT achieved strong volume growth across key categories and business verticals. The replacement segment delivered consistent growth throughout the year, while the OEM business showed particularly strong performance in Q4.

Mr. Arnab Banerjee, MD & CEO of CEAT Limited, commented on the results: "It was a very satisfying top line performance for the quarter and overall, for the year as we managed to deliver a double-digit growth across all key categories and business verticals. We crossed an important milestone of crossing Rs 13,000 crores of revenue during the year."

Financial Performance

The company's Q4 performance showed improvement in margins compared to the previous quarter. EBITDA margin expanded by 101 basis points quarter-on-quarter to 11.5%, primarily due to a stable raw material basket and favorable revenue mix.

Mr. Kumar Subbiah, CFO of CEAT Limited, stated: "Our operating margins improved in Q4 by over 120 bps, largely driven by favorable revenue mix and result of strong cost controls across the value chain."

Capital Expenditure and Operational Efficiency

CEAT incurred a capital expenditure of Rs 946.00 crore during FY25, primarily focused on capacity additions to support future growth plans. In Q4, the company spent Rs 37.00 crore on voluntary separation of employees at one of its high-cost factories, demonstrating its commitment to improving manufacturing efficiency.

Market Performance

The company reported healthy year-on-year volume growth in the OEM segment, followed by the replacement segment. However, the international business faced challenges due to global macroeconomic conditions.

Dividend Announcement

The Board of Directors has recommended a dividend of Rs 30.00 per equity share (300%) for FY24-25, subject to shareholder approval.

Future Outlook

CEAT is looking forward to integrating the CAMSO compact construction business, which it recently agreed to acquire from the Michelin Group. This strategic move is expected to strengthen CEAT's position in the off-highway tyre segment.

As CEAT continues to focus on operational efficiency and strategic growth initiatives, the company remains well-positioned to capitalize on opportunities in the evolving automotive and tyre markets.