Ceat's EBITDA up by 21 per cent

Ceat Ltd. the premium tyre manufacturer has declared its Q4FY16 results. On a (QoQ) basis results have disappointed. Consolidated Net Income from Operations has seen an increase of 6 per cent and stands at Rs 1459.23 crores as compared to the previous quarter where the Net Income stood at Rs 1380.13 crores. EBITDA margin on a (QoQ)basis has declined and stands at Rs 194.93 crores as compared to 202.02 crores of the previous quarter. EBITDA has seen a decline of 4 per cent on a (QoQ) basis. Net profit on a (QoQ) basis has been down by 4 per cent and stands at Rs 194.93 crores.

On a (YoY) basis the Net Income from Operations has decreased by 2 per cent and stands at Rs 5715.12 crores as compared 5802.38 crores (YoY). EBITDA margin has increased by 21 per cent and stands at Rs 823.29 crores as compared to Rs 680.64 crores for the previous year.Net profit on a (YoY) basis has seen an increase of around 42 per cent and stands at Rs 444.67 crores.

The company has managed to register a double digit growth as consumption cost of raw materials has declined, due to soaring oil prices, which have benefited and given a support to the profit margin. Another reason for such a high profit margin has been the Interest Expense. Interest cost on a (YoY) basis has seen a steep decline of 31 per cent. The shares on the bourses are trading at Rs 1138.05 crores owing to a good (YoY) earning.

Ceat Limited is an India based tyre manufacturing company. The company manufactures, exports and supplies automobile tyres. The company manufactures tyres for trucks & buses, LCVs, passenger cars, tractors and trailers, two wheelers & three wheelers, off the road vehicles and industrial vehicles.