CEAT tyres revenue goes up by 10% in FY13-14
CEAT Limited, which is one of the leading tyre manufacturers of the country, has announced a 10% hike in its revenue for the financial year 2013-14. The released audit results show a rise of Rs 5,508 crore, with PAT surging to Rs 271 crore, a hike of 126%. CEAT’s India operations posted revenue of Rs 5,304 crore with PAT rising to Rs 254 crore, a 139% hike. Anant Goenka, Managing Director, CEAT Limited said, “While the automobile industry grew a meagre 3.5%. CEAT grew 10%. Our sales have grown better than the industry. We saw a rise of 11% in the replacement market, while OEM sales surged by 19%.
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The Rs 5,300 crore company has a processing capacity of over 700 tonnes per day, and has a wide portfolio of tyre across all segments and manufacturers. The company manufactures tyres for cars, motorcycles, scooters, auto-rickshaws, heavy duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors and trailers. Most of the sales come from the light truck and truck tyres segment, where the brand enjoys the majority of its market share. The parent company, RPG Enterprises, is a business group with interests in the tyre industry, infrastructure, Information Technology and Speciality industry.
Looking at the recent investments that the company has made, the company invested LKR 600 million in setting up a new plant in Sri Lanka which is responsible for producing radial tyres for passenger vehicles. The capacity cured by 70%, which implies up from 23,000 units to 39,000 units per month. CEAT had previously announced another investment of another Rs 650 crore for the phase II of the radial facility in Halol. The company states that the project is already on track and will be up for production in 18 months. Also in the news, the company has appointed Punita Lal as Additional Director on the CEAT Board.
The fourth quarter performance of the company posted a growth of 7.5%, which stands at Rs 1,396 crore which comparing to the previous quarter, stood at Rs 1,299 crore. PAT remained at Rs 59 crore for the quarter. Subbarao Amarthaluru, Chief Financial Officer, CEAT Limited stated, “We are happy to note that the margins have improved by over 300 basis points to 11.9% this year from 8.7% the previous year. The favourable product and market mix have contributed to this growth in the margins”.
