Home-grown Tyre manufacturer Ceat Tyres recorded PAT of INR 152.80 crore for the period ended March 31, 2021, as against INR 51.88 crore in the same period last year.
The company has reported a total income of INR 2292.89 crore during the period ended March 31, 2021, as compared to INR 1576.92 crore during the year-ago period.
Bullish on demand, the company will invest INR 1,205 crore to expand capabilities in the TBR segment, the company said in a regulatory filing to BSE.
Commenting on the results as well as the outlook of the business, Anant Goenka, Managing Director, CEAT, said, “It has been a very satisfactory year with record sales and profitability, especially in a year that has been marked by uncertainty due to COVID-19. We gained market share in PCR and TBR segments. Encouraged by buoyancy in demand, we added new capacity in the TBR segment.”
The company said that due to an increase in commodity prices, there has been some erosion in gross margins, which prompted us to increase the price.
Frequent lockdowns and high commodity prices remain an industry-wide concern on OEM and retail demand.
Kumar Subbiah, CFO of CEAT Limited, said, “We have posted a strong PAT growth of 180% Y-o-Y and sequential growth of 11% in Q4 aided by top-line growth, supplemented by the benefit arising out of moving to a new rate of the tax-effective previous financial year.”
“There has been a drop in our gross margins during the quarter due to steep raw material costs, which remains a concern in the coming months on our margins. Our strong focus on cash flows and tight working capital management during the year helped us to bring down our gross debt by INR 510 crore leading to improvement in our leverage ratios and stronger balance sheet,” he added.