Goodyear Tyre Q4 PAT Growth Shoots To Rs 43 Crore
Published On 28-May-2021 21:11:49
Riding on the robust rural demand and strong consumer replacement distribution, Goodyear registered a 50% rise in its total income for Q4.
At a time when the market is reeling with a slowdown, Goodyear Tyre registered over a three-fold rise in its profit after tax (PAT) to Rs 43 crore for the fourth quarter of the last financial year compared to Rs 13 crore in the same period last year.
As per the press release from tyre giant, it reported close to 240% of growth. The overall rise in total income was 50 per cent at Rs 574 crore in the last quarter compared to last year.
The significant factors for this encouraging growth, as per Goodyear, are increase in farm demand, base impact of Covid-19 in March 2020 and distribution expansion initiatives in consumer replacement business.
Detailing the reasons, Sandeep Mahajan, Chairman and Managing Director, Goodyear India says that they benefited from their ongoing enhancement of their consumer replacement distribution network, particularly in rural markets where they are creating synergies with their farm business. Their distribution initiatives are strengthening their position in the market and helping them build a sustainable business. Their results also reflect increasing momentum in the farm segment driven by a resurgence in rural demand and their excellent products and customer service.
“While we expect to continue advancing our strategic priorities in fiscal 2022, safeguarding our associates and helping our communities to overcome the pandemic remain our priorities,” Mahajan added.
Despite the Covid impact, the total income of Goodyear for the fiscal year 2020-21 was at Rs 1814 crore – marking a 2 per cent hike. The PAT for the financial year 2021 reached Rs 136 crore, which is a rise of 53 per cent over its last year’s figures of Rs 89 crore.
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The tyre maker states in the release that they continue to register good volumes owing to record consumer replacements and solid rural demand.
Moreover, the company also declared an Interim Dividend of Rs 80 per equity share last year in December, which led to Rs 185 crore of outflow.
Source: ET Auto