CEATLTD

Q4 Result Analysis

reported a healthy top-line performance in Q4FY25, though profitability faced pressure due to margin contraction and restructuring costs. Q4FY25 Consolidated Highlights (YoY comparison): - Revenue: ₹3,420.6 crore, up 14.3% – growth led by strong traction across OEM and Replacement segments. - EBITDA margin: 11.5%, down 189 basis points YoY, but improved 101 basis points QoQ, indicating sequential margin recovery. - Net profit: ₹98.7 crore, down 3.5% – slightly impacted by higher expenses and one-time charges. Standalone Performance: - Revenue: ₹3,413.6 crore, up 14.6% YoY. - EBITDA margin: 11.6% – in line with consolidated performance. - Net profit: ₹100.4 crore, down 15.7% YoY – affected more sharply, possibly due to factory-specific cost adjustments. Key management commentary: - CEAT crossed ₹13,000 crore in annual revenue for the first time. - Replacement segment delivered steady growth; OEM performance was notably strong in Q4. - Operating margins improved sequentially due to favorable mix and disciplined cost management. - Capex of ₹946 crore during the year, primarily toward capacity expansion. - One-time voluntary retirement expense of ₹37 crore incurred in Q4 to optimize manufacturing cost structure. - Integration of the CAMSO compact construction business planned for FY26, likely to strengthen off-highway tyre portfolio. Outlook: - CEAT appears to be well-positioned for FY26 with capacity expansion and segmental diversification. - Margin recovery and successful integration of CAMSO will be key metrics to track.