CEAT Limited, an RPG Group company, has reported a three-fold growth in profits to ₹153 crore in the fourth quarter ended March 31, 2021 compared to ₹52 crore for the corresponding period last year. Revenues increased to ₹2,290 crore (₹1,577 crore).
Anant Goenka, Managing Director, CEAT Limited, said: “It has been a satisfactory year with record sales, especially in a year marked with uncertainty because of Covid-19.We gained market share in the Passenger Car Radial (PCR) and Truck Bus Radial (TBR) segment, encouraged by which we added new capacity to the TBR segment.”
Kumar Subbiah, CFO of CEAT Limited said “ Drop in our gross margins and steep material costs remain a concern in the coming months in our margin.”
New capacity addition
The Board has approved additional investment by way of capex of ₹1,205 crore to enhance TBR capacity at the Chennai greenfield plant in two phases, up to 190 tonnes per day capacity over four years. The investment will be funded through a mix of debt and internal accruals.
The Board has also recommended a final dividend of ₹18 that is 180 per cent per equity share of face value of ₹10.