Ceat (500878) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 14.3% YoY to INR 3,420.6 crore, with full-year revenue at INR 13,218 crore, both record highs driven by volume and price growth.

• Q4 standalone profit was INR 100.4 crore, up 5% QoQ; consolidated PAT for Q4 was INR 98.7 crore, down 3.5% YoY; full-year PAT was INR 471.4 crore, down 25.8% YoY.

• Volume growth in Q4 was 11%, with full-year volume growth at 7%.

• Board recommended a 300% dividend (INR 30/share) for FY25, subject to shareholder approval.

• CapEx for FY25 was INR 946 crore, mainly for capacity additions.

Financial highlights

• Q4 FY25 gross margin was 37.5%, up 60–64 bps QoQ but down 483 bps YoY; EBITDA margin at 11.5%, up 101 bps QoQ but down 189 bps YoY.

• Debt increased to INR 1,928 crore, with D/E ratio at 0.44x and Debt/EBITDA at 1.29x as of March 31.

• Working capital increased sequentially, contributing to a INR 95 crore rise in debt.

• Finance cost for Q4 FY25 was INR 74.4 crore, up 20.7% YoY.

• Exceptional expense for Q4 FY25 was INR 37 crore, mainly due to a Voluntary Retirement Scheme.

Outlook and guidance

• Tyre market expected to grow at 6-7% CAGR in volume terms till 2047; exports to grow at 10-11% long-term.

• Q1 FY26 expected to see continued rural demand strength, with urban demand remaining soft.

• Gross margin targeted to improve towards 40%+ in coming quarters.

• International business and premiumization remain key growth drivers, with Camso integration anticipated in the current year.