Latest CEAT Shares Fall News:
Tyre manufacturer CEAT saw a 3.7% rise in its quarterly expenses, taking them to Rs 2,798 crore. This was driven by a 5.5% increase in raw material costs. The company’s Q4 financial results, ending March 2024, were below investor expectations and caused its share price to fall 9.8% during morning trading on May 3. CEAT’s consolidated net profit dropped 23% YoY to Rs 102 crore as higher rubber prices and new regulatory costs related to Extended Producer Responsibility (EPR) affected the bottom line.
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However, the company’s revenue from operations rose to Rs 2,992 crore for the quarter under review. Rubber prices – which are important for tyre production – increased around 10% during January-March quarter, according to analysts.
Despite headwinds, CEAT’s EBITDA margin expanded to 13.1% in Q4.
CEAT MD & CEO Arnab Banerjee spoke about the full year performance said that FY24 has concluded on a strong note for the company where we have seen volume recovery in both replacement and international markets in the latter half of Q4 along with stable quarterly margins and significant year long margin improvements.Banerjee also noted positive momentum continuing into Q1FY25.
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The board of directors at CEAT has recommended a final dividend of Rs thirty per equity share i.e., three hundred percent on an Equity Share having face value of Rs ten each for FY24.The same is subject to approval of shareholders at the ensuing Annual General Meeting.
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