Ceat Q4 Review – Higher Raw Material Cost Hurts Margin; Near Term Outlook Challenging: Motilal Oswal

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Ceat Ltd.’s Q4 FY21 performance was impacted by raw material cost inflation and weaker mix.

While cost inflation will impact near-term performance, strength in demand will enable gradual pass through of cost.

Revenue/Ebitda/profit after tax grew 46%/30%/116% YoY in Q4 FY21 to Rs 22.9 billion/Rs 2.6 billion/Rs 1.53 billion.

Revenue/Ebitda/profit after tax grew 12%/36%/100% YoY to Rs 76.1 billion/Rs 9.8 billion/Rs 4.6 billion in FY21.

Volumes grew 45% YoY in Q4 FY21 YoY (stable QoQ).

On a QoQ basis, exports and original equipment manufacturer volumes grew in mid to high single-digits, while replacement volumes fell 5-6% (as truck-bus radial and two-wheeler volumes declined QoQ)

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Motilal Oswal Ceat Q4FY21 Result Review.pdf


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