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CEAT's profit up 6% at Rs 252.22 crore in FY19, revenue stands at Rs 6,984.51 crore

BusinessToday.In     May 7, 2019

Tyre maker CEAT closed financial year 2018-19 with consolidated net profit of Rs 252.22 crore, a growth of 5.98 per cent over last year. The company had posted consolidated net profit at Rs 237.98 crore in the last fiscal.

"The total consolidated revenue of the company stood at Rs 6,984.51 crore in FY19 as compared to Rs 6,283.42 crore in FY18, registering a growth of 11.2 per cent," CEAT said in a filing to the Bombay Stock Exchange on Tuesday.

CEAT, the flagship company of RPG Enterprises, reported 3.9 per cent year-on-year rise in operating profit (EBITDA) at Rs 663 crore in FY19.

During January-March quarter, consolidated net profit decreased by 16.64 per cent to Rs 64.25 crore as against Rs 77.08 crore in the corresponding quarter last year.

EBITDA for the same period stood at Rs 166 crore, translating into a 9.4 per cent margin, the company said.

The company posted a 4.4 per cent rise in total revenue at Rs 1,760.47 crore in Q4FY19 versus Rs 1,686.09 crore in March quarter last year.

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Commenting on the results as well as the outlook for the business, Anant Goenka, Managing Director, CEAT Limited said, "In the past year, we have endeavoured to sustain our growth trajectory during what was a rather muted period. The impact of rising crude prices and production cuts by automobile manufacturers has been felt across the auto and ancillary industry. However, CEAT continues its capacity expansions as planned with Halol's Truck and Bus radial plant commencing operations in February."

"We exercised tight control over discretionary operational expenses during the quarter and overall cash flow covering both Capital Expenditure and working capital during the quarter and this is reflected in our margins,'' said Kumar Subbiah, CFO,CEAT Limited.

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The company's board has recommended a final dividend of Rs 12 per equity share i.e. 120% per equity share of Rs 10 each fully paid up, for the financial year ended March 31, 2019, subject to the approval of the members at the ensuing Annual General Meeting.

CEAT is one of leading tyre manufacturers in India and produces over 1.5 crore tyres a year. Shares of CEAT closed trade at Rs 1,035.45 apiece, down 0.82 per cent, on the BSE ahead of its earnings announcement.

Edited by Chitranjan Kumar

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