CEAT Q4 earnings: Stock rises 9% on double-digit dividend, positive business outlook

Shares of tyremaker CEAT rose over 9% on Wednesday after the firm reported its Q4 earnings. Net profit slipped 3.5% to Rs 99 crore in the last quarter against Rs 102 crore in the year ago period. On a consolidated basis, the revenue came at Rs 3,420.6 crore, an increase of 14.3% Y-o-Y from Rs 2992 crore in the March 2024 quarter. 

EBITDA margins stood at 11.5%. EBITDA slipped 1.8% to Rs 393.5 crore in the last quarter against Rs 400.9 crore in the March 2024 quarter. 

CEAT stock rose 9.32% to Rs 3346.75 on BSE. Market cap of CEAT rose to Rs 13,484 crore on BSE. CEAT shares have a one-year beta of 1, indicating average volatility during the period. Total 0.48 lakh shares changed hands amounting to a turnover of Rs 15.53 lakh.

The CEAT stock has gained 51.12% from its 52 week low of Rs 2211 reached on May 13, 2024. 

The large cap stock hit a 52-week high of Rs 3581.45 on December 9, 2024. 

Commenting on the results and the outlook of the business, Arnab Banerjee, MD & CEO, CEAT said, “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. The Replacement segment delivered strong growth consistently during the year and OEM business delivered strong performance in Q4. We managed to deliver improvement in margins in Q4 versus Q3. We look forward to integrating the CAMSO compact construction business with CEAT in the current year.”

The Board of Directors of the Company recommended a dividend of Rs 30/- per equity share of Rs 10/- each for the year ended March 31, 2025, subject to approval of the shareholders at the ensuing annual general meeting of the company. 

In terms of technicals, the relative strength index (RSI) of CEAT stands at 63.1, signaling it's trading neither in the overbought nor in the oversold zone. CEAT shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

CEAT's  principal business is manufacturing of automotive tyres, tubes and flaps.