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Share the post "Goodyear India ‘s Q2 Update: Profit Falls by 58.51% Year-on-Year"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -1.14 % over the year, decrease in net sales/revenue by -1.32 %.
- 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 9.98 %. Marginal increase in other income during this quarter, up by 23.41%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Goodyear India Ltd.,. Profit dropped by -58.51 % Year to Year, Goodyear India Ltd.,’s profitability dropped by -37.12 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -58.54 % Year to Year. EPS decreased by -37.14 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 690.12 Cr | Rs. 691.38 Cr | Rs. 682.25 Cr | -1.32 % | -1.14 % |
| Expenses | Rs. 628.79 Cr | Rs. 647.05 Cr | Rs. 651.16 Cr | + 0.64 % | + 3.56 % |
| Operating Profit | Rs. 61.33 Cr | Rs. 44.33 Cr | Rs. 31.09 Cr | -29.87 % | -49.31 % |
| OPM % | 8.89 % | 6.41 % | 4.56 % | -1.85 % | -4.33 % |
| Other Income | Rs. 4.41 Cr | Rs. 3.93 Cr | Rs. 4.85 Cr | + 23.41 % | + 9.98 % |
| Interest | Rs. 1.14 Cr | Rs. 0.95 Cr | Rs. 0.91 Cr | -4.21 % | -20.18 % |
| Depreciation | Rs. 13.89 Cr | Rs. 13.86 Cr | Rs. 13.88 Cr | + 0.14 % | -0.07 % |
| Profit before tax | Rs. 50.71 Cr | Rs. 33.45 Cr | Rs. 21.15 Cr | -36.77 % | -58.29 % |
| Tax % | 25.18 % | 25.17 % | 25.58 % | + 0.41 % | + 0.4 % |
| Net Profit | Rs. 37.94 Cr | Rs. 25.03 Cr | Rs. 15.74 Cr | -37.12 % | -58.51 % |
| EPS in Rs | Rs. 16.45 | Rs. 10.85 | Rs. 6.82 | -37.14 % | -58.54 % |
Today, we’re looking at Goodyear India Ltd.,’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a significant year-over-year sales decline of -1.14 %. However, it did see a marginal slip of -1.32 % from the previous quarter. Expenses ticked up slightly by 0.64 % quarter-on-quarter, aligning with the annual rise of 3.56 %. Operating profit, while down -49.31 % compared to last year, faced a quarter-on-quarter dip of -29.87 %, 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 -4.33 %, but a shrinkage of -1.85 % sequentially. Other income rose by 23.41 % compared to the last quarter, despite an annual growth of 9.98 %. Interest expenses dropped significantly by -4.21 % from the previous quarter, yet the year-over-year decrease remains at a moderate -20.18 %. Depreciation costs climbed by 0.14 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -0.07 %. Profit before tax declined annually by -58.29 % but saw a reduction from the preceding quarter by -36.77 %.
Tax expenses as a percentage of profits increased slightly by 0.4 % compared to last year, with a more notable quarter-on-quarter increase of 0.41 %. Net profit fell by -58.51 % year-on-year but witnessed a -37.12 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -58.54 % but a quarterly fall of -37.14 %. In summary, Goodyear India Ltd.,’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. 690.12 Cr | Rs. 691.38 Cr | Rs. 682.25 Cr | -1.32 % | -1.14 % |
| Expenses | Rs. 628.79 Cr | Rs. 647.05 Cr | Rs. 651.16 Cr | + 0.64 % | + 3.56 % |
| Operating Profit | Rs. 61.33 Cr | Rs. 44.33 Cr | Rs. 31.09 Cr | -29.87 % | -49.31 % |
| Net Profit | Rs. 37.94 Cr | Rs. 25.03 Cr | Rs. 15.74 Cr | -37.12 % | -58.51 % |
| EPS in Rs | Rs. 16.45 | Rs. 10.85 | Rs. 6.82 | -37.14 % | -58.54 % |
In reviewing Goodyear India Ltd.,’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -1.14 % year-on-year, although there was a slight dip of -1.32 % from the previous quarter. Expenses rose by 3.56 % compared to the previous year, with a 0.64 % increase quarter-on-quarter. Operating Profit dropped by -49.31 % annually, and saw a -29.87 % decrease from the last quarter.
Net Profit showed yearly decrease of -58.51 %, and experienced a -37.12 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -58.54 % annually, however dipped by -37.14 % compared to the last quarter. In essence, while Goodyear India Ltd., faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
-11
3-Year Profit
-1
5-Year Profit
0
10-Year Profit
1,201
Current Price
2,770
Market Cap
For the company identified by BSE code 500168, the financial performance highlights a solid five-year profit of -1 percents. This figure escalates to -11 percents over the three-year period, pointing to positive momentum in its earnings. Despite these encouraging trends, the trailing twelve-month (TTM) figures uncover an alarming profit loss of -57 percents. This decline, coupled with the fact that the company recorded zero sales across all periods examined, raises red flags about the sustainability of its business model and its ability to generate consistent revenue. Furthermore, the stock price fluctuations during this period further reflect the company's uncertain position. The stock started at 1 percents but has since plummeted to -21 percents recently, painting a picture of rapid decline. Over a longer ten-year horizon, the stock price stood at 5 percents, further underscoring the long-term challenges the company faces in maintaining investor confidence and market value.
Currently valued at ₹2,770 crore, the company's stock price stands at ₹1,201. Over the years, it has seen significant fluctuations, with its price ranging from ₹1,451 / 1,091, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 29.2, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹252, which represents the net asset value of the company per share. The dividend yield of 1.25% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 22.0%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 16.0%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.01, signaling conservative financial management. However, the net cash flow is negative at ₹-28.8 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 5.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹483, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 4.76, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
Upon examining the financial data for BSE code 532406, it becomes clear that the company achieved a notable five-year profit of 42 percents, which impressively increased to 54 percents in the three-year window. This upward trajectory, however, has been overshadowed by the latest trailing twelve-month (TTM) figures, which indicate a concerning loss of 42 percents. This financial loss is further compounded by the fact that the company has not recorded any sales across any of the timeframes under consideration. Such an unusual situation might suggest that the company operates under an unconventional business model, which could potentially carry higher risks. In terms of stock performance, the company’s stock price has seen a decline, falling from 112 percents over the five-year period to just 47 percents in the last year. The ten-year average stock price, which sits at 49 percents, highlights long-term volatility, casting doubt on the company's ability to sustain its market position over time. This warrants further investigation into the factors driving these fluctuations.
Currently valued at ₹3,820 crore, the company's stock price stands at ₹157. Over the years, it has seen significant fluctuations, with its price ranging from ₹224 / 86.0, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 65.0, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹8.09, which represents the net asset value of the company per share. The dividend yield of 0.12% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 47.4%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 38.7%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.09, signaling conservative financial management. However, the net cash flow is negative at ₹0.86 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 8.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹21.0, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 19.4, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
