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Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 8.78 % in the past year, substantial increase in net sales/revenue by 6.72 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 1245.88 %. Marginal decrease of -8.26% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for CEAT Limited. Notable increase of 7.06 % in net profit Year to Year, CEAT Limited’s profitability increased by 50.76 % in this quarter.
- EPS over the Year and quarter: EPS increased by 6.60 % Year to Year. EPS increased by 41.99 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2935.17 Cr | Rs. 2991.85 Cr | Rs. 3192.82 Cr | + 6.72 % | + 8.78 % |
| Expenses | Rs. 2548.07 Cr | Rs. 2600.34 Cr | Rs. 2809.94 Cr | + 8.06 % | + 10.28 % |
| Operating Profit | Rs. 387.1 Cr | Rs. 391.51 Cr | Rs. 382.88 Cr | -2.2 % | -1.09 % |
| OPM % | 13.19 % | 13.09 % | 11.99 % | -1.1 % | -1.2 % |
| Other Income | Rs. 0.85 Cr | Rs. 12.47 Cr | Rs. 11.44 Cr | -8.26 % | + 1245.88 % |
| Interest | Rs. 70.13 Cr | Rs. 61.66 Cr | Rs. 61.85 Cr | + 0.31 % | -11.81 % |
| Depreciation | Rs. 120.94 Cr | Rs. 136.06 Cr | Rs. 131.77 Cr | -3.15 % | + 8.95 % |
| Profit before tax | Rs. 196.88 Cr | Rs. 206.26 Cr | Rs. 200.7 Cr | -2.7 % | + 1.94 % |
| Tax % | 26.53 % | 33.04 % | 26.61 % | -6.43 % | + 0.08 % |
| Net Profit | Rs. 144.01 Cr | Rs. 102.27 Cr | Rs. 154.18 Cr | + 50.76 % | + 7.06 % |
| EPS in Rs | Rs. 35.75 | Rs. 26.84 | Rs. 38.11 | + 41.99 % | + 6.6 % |
Today, we’re looking at CEAT Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 8.78 %. However, it did see a marginal increase of 6.72 % from the previous quarter. Expenses ticked up slightly by 8.06 % quarter-on-quarter, aligning with the annual rise of 10.28 %. Operating profit, while down -1.09 % compared to last year, faced a quarter-on-quarter dip of -2.2 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.2 %, but a shrinkage of -1.1 % sequentially. Other income fell by -8.26 % compared to the last quarter, despite an annual growth of 1245.88 %. Interest expenses surged remarkably by 0.31 % from the previous quarter, yet the year-over-year decrease remains at a moderate -11.81 %. Depreciation costs fell by -3.15 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 8.95 %. Profit before tax grew annually by 1.94 % but saw a reduction from the preceding quarter by -2.7 %.
Tax expenses as a percentage of profits increased slightly by 0.08 % compared to last year, with a more notable quarter-on-quarter decrease of -6.43 %. Net profit rose by 7.06 % year-on-year but experienced a 50.76 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 6.6 % but a quarterly rise of 41.99 %. In summary, CEAT Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 2935.17 Cr | Rs. 2991.85 Cr | Rs. 3192.82 Cr | + 6.72 % | + 8.78 % |
| Expenses | Rs. 2548.07 Cr | Rs. 2600.34 Cr | Rs. 2809.94 Cr | + 8.06 % | + 10.28 % |
| Operating Profit | Rs. 387.1 Cr | Rs. 391.51 Cr | Rs. 382.88 Cr | -2.2 % | -1.09 % |
| Net Profit | Rs. 144.01 Cr | Rs. 102.27 Cr | Rs. 154.18 Cr | + 50.76 % | + 7.06 % |
| EPS in Rs | Rs. 35.75 | Rs. 26.84 | Rs. 38.11 | + 41.99 % | + 6.6 % |
In reviewing CEAT Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 8.78 % year-on-year growth, however, there was a minor increase of 6.72 % from the previous quarter. Expenses rose by 10.28 % compared to the previous year, with a 8.06 % increase quarter-on-quarter. Operating Profit dropped by -1.09 % annually, and saw a -2.2 % decrease from the last quarter.
Net Profit showed yearly increase of 7.06 %, and experienced a 50.76 % increase from the previous quarter. Earnings Per Share (EPS) rose by 6.6 % annually, however rose by 41.99 % compared to the last quarter. In essence, while CEAT Limited exhibits strong annual growth indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
