Ceat profits rise 70% on lower costs, higher volumes

Mumbai, India – Ceat Ltd. has seen fourth quarter earnings (EBITDA) and sales improve for its fiscal year ended 31 March, helped by a recovery in volumes.

Earnings for the full-year were up 70.4% on prior-year levels, at INR16 billion, on sales 5.6% higher at INR120 billion, Ceat reported 2 May.

Earnings margin grew 533 bps to 14.0%, with an expected ‘positive momentum in the first quarter of fiscal year 2025.’

Ceat linked the improved margin mainly to raw materials cost reductions and operational efficiencies.

For the final quarter, the Indian tire maker posted a 6.8% year-on-year increase in earnings to INR4 billion, on 4% stronger revenue of nearly INR30 billion.

Ending the year “on a positive note”, Ceat “saw recovery in volumes in the second half of the quarter in replacement and international markets.”

According to managing director and CEO Arnab Banerjee, Ceat achieved “commendable growth”, largely attributable to share-gain in passenger categories both in 2W and 4W categories.

Furthermore, Banerjee said Ceat witnessed “substantial expansion within the export segment” during the final quarter.

A quarter-on-quarter dip in margins, to 13.4%, was linked to ‘higher expenses related to investments in extended producers responsibility’ – now mandatory in India.