Ceat (500878) Q4 23/24 earnings summary

Executive summary

• Achieved record consolidated revenue of ₹11,943 crore in FY24, up 5.6% year-over-year, driven by higher sales volumes and improved product mix.

• EBITDA rose 70.4% to ₹1,673 crore, with margin expansion to 14% from 8.7% last year, reflecting lower raw material costs and operational efficiencies.

• Net profit surged 248% to ₹635 crore, supported by strong domestic demand, cost optimization, and recovery in exports.

• Declared highest-ever dividend of ₹30 per share (300%), totaling ₹121 crore, reflecting robust cash flows and capital discipline.

• Awarded the Deming Grand Prize for Total Quality Management, a global first for a tyre company.

Financial highlights

• Consolidated revenue: ₹11,943 crore (+5.6% YoY); Standalone revenue: ₹11,893 crore (+5.6% YoY).

• EBITDA: ₹1,673 crore (+70.4% YoY); EBITDA margin: 14% (up from 8.7%).

• Net profit: ₹635 crore (+248% YoY); EPS: ₹158.87 (vs. ₹46.02 last year).

• Gross debt reduced by ₹473 crore; Net debt/equity improved to 0.4 from 0.62.

• Cash flow from operations: ₹1,719 crore (+42% YoY).

• Dividend payout: ₹121 crore (₹30/share), up from ₹49 crore (₹12/share) last year.

Outlook and guidance

• FY25 capex planned at ₹1,000 crore, focused on capacity expansion in Chennai and Ambernath, and maintenance.

• Targeting further export growth, especially in the US and Europe, with new product launches and market entries.

• Continued focus on premiumisation, electrification, and digitisation to drive margin improvement.

• Committed to reducing carbon footprint by 50% by 2030 and increasing sustainable material usage to 40% by 2030.