CEAT witnesses 134 per cent growth in Q1 net profit
Published On 04-Jun-2016
Tyre manufacturer CEAT Limited, a part of RPG Group, disclosed its unaudited first quarter results. Although the total revenue of the company remained flat at Rs 1,456 crore, a 134 per cent increase (Rs 121 crore, to be exact) was seen in the company's net profit while the EBITDA saw an increase of 65 percent (Rs 224 crore), on a Year-on-Year (YoY) basis. The consolidated EBITDA margins jumped by 15.4 per cent in Q1 of FY2015-16.
India operations of the company generated revenue of Rs 1,407 crore on a standalone basis. EBITDA increased by 72 per cent YoY. The EBITDA margins also went up to 15.4 per cent as compared to 9 per cent in the previous year. The standalone profit after tax is Rs 118 crore, which is an increase of 152 per cent YoY.
Anant Goenka, Managing Director, CEAT Limited, said, “In this quarter, our sales growth was flat. However, margins have improved largely due to lower raw material cost coupled with improving product mix.”
He added, "Leverage ratios have improved further in this quarter. Debt/equity has come down from 1.0 times in Q1 last year to 0.4 times this quarter. Debt to EBITDA has improved from 2.1 in Q1 last year to 0.8 times this quarter."
Established in 1958, CEAT is one of the leading tyre manufacturers of India and has a strong presence in global markets. The tyre maker has a capacity of producing over 800 tonnes per day. CEAT offers the widest range of tyres to all segments and manufactures world-class radials for Heavy-duty Trucks and Buses, Light Commercial Vehicles, Earthmovers, Forklifts, Tractors, Trailers, Cars, Motorcycles, Scooters and Auto-rickshaws. CEAT enjoys a major market share in the light truck and truck tyre market.