Tyre manufacturer CEAT, part of the RPG Group, reported its financial results for the fourth quarter (Q4) of FY2024- 25 (FY25). The company’s consolidated net profit fell by 8.36%, standing at ₹99.49 crore for Q4FY25. However, revenue from operations increased by 14.33%, reaching ₹3,420.62 crore during the same period.
The decline in profit was mainly due to reduced operating margins and an increase in raw material costs, especially rubber. This affected the overall profitability, even though the revenue saw strong growth.
Read More, Nifty Weekly Expiry Today: RBL Bank Under F&O Ban on April 30.
When compared to the previous quarter (Q3FY25), revenue from operations grew by 3.66%, and net profit also saw a 2.45% increase, showing improvement on a sequential basis.
For the full financial year (FY25), CEAT’s revenue from operations rose by 10.7%, reaching ₹13,217.87 crore, up from ₹11,943.48 crore in FY24. However, the net profit for the year declined by 26.4%, dropping to ₹472.64 crore, compared to ₹642.65 crore in the previous year.
CEAT’s Managing Director and CEO, Arnab Banerjee, commented that the company was able to improve margins in Q4 compared to Q3. He highlighted the achievement of crossing ₹13,000 crore in revenue as a significant milestone. He also stated that the replacement tyre segment performed consistently well throughout the year and that the OEM (Original Equipment Manufacturer) business had a strong showing in Q4.
CEAT took selective price increases during Q4, especially in the passenger car and two-wheeler segments, to help manage the rising rubber prices. However, the company could not completely offset the impact of increased input costs.
Kumar Subbiah, CEAT’s Chief Financial Officer (CFO), explained that while the company tried to reduce the effect of raw material price increases through price hikes, some impact on margins remained. He added that CEAT is working on cost-efficiency initiatives across the value chain to restore gross margins. Future price increases will depend on how raw material trends develop.
In FY25, CEAT spent ₹946 crore in capital expenditure, primarily aimed at expanding production capacity to support its growth plans for FY26. As part of its ongoing efforts to remain cost-competitive, the company also incurred an expense of ₹37 crore during the fourth quarter on a voluntary separation scheme for employees at one of its high-cost manufacturing units.
CEAT Limited is a multinational tyre manufacturer with Italian-Indian roots and is part of the RPG Group. Originally founded in 1924 in Turin, Italy, the company now has a strong presence in international markets.
As of 9:39 am IST on April 30, CEAT share price were trading at ₹3,143.00, up ₹82.60 or 2.70% for the day. The stock opened at ₹3,045.10 and has so far touched a high of ₹3,200.00 and a low of ₹3,020.30 during the session. CEAT’s market capitalisation stands at ₹12,720 crore, with a price-to-earnings (P/E) ratio of 26.39 and a dividend yield of 0.95%. The stock’s 52-week high is ₹3,578.80, while the 52-week low is ₹2,210.15.
Despite facing margin pressure from rising input costs, CEAT delivered steady revenue growth in Q4 and crossed ₹13,000 crore in annual revenue. Strategic price hikes and capacity expansion signal the company’s efforts to strengthen competitiveness and sustain long-term growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 30, 2025, 9:46 AM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
