BackCeat Ltd consolidated Q4 net profit slips 19% at Rs52 crore
Analysts say the decline in profit can be directly attributed to lower vehicle sales during the quarter
PremiumMUMBAI : Leading tyre manufacturer Ceat Ltd reported a 19% YoY drop in its consolidated profit, which stood at ₹52 crore for the March quarter. The company’s profit in Q4FY19 was Rs64 crore.
Analysts say the decline in profit can be directly attributed to lower vehicle sales during the quarter, which saw lockdown imposed during the festive season of gudi padwa and navratri in March.
Ceat’s consolidated Q4FY20 revenue from operations were at Rs1,573 crore, down 11% YoY from Rs1,760 crore from the year-ago period.
The company has, in its financial statements, made a provision of exceptional items to the tune of Rs28.18 crore for the March quarter as against Rs40.51 crore in Q4FY19.
“The Group had introduced a voluntary retirement scheme or VRS for its employees. The compensation in respect of employees who opted for VRS aggregated to Rs12.24 crore for the March quarter," Ceat Ltd said in a statement.
The company also specified that it has made provision for areas such as unusable semi finished inventory and raw materials aggregating Rs13.27 crore due to abrupt stoppage of production facilities, borrowing costs not capitalized due to temporary suspension related to ongoing capital projects, contract manpower cost and export detention for the period attributable to the pandemic aggregate Rs2.67 crore among others under exceptional items.
For the full year, Ceat reported consolidated revenue from operations at Rs6,779 crore, down 3% YoY from Rs6,985 crore in FY19. The exceptional items for FY20 were at Rs30 crore as against Rs45 crore during FY19.
Ceat’s FY20 consolidated profit is at Rs231 crore, down 8.3% YoY from Rs252 crore in FY19.
The company has already resumed operations across its facilities in Nasik, Nagpur, Mumbai and Halol (Gujrat) with restricted movement of manpower adhering to the guidelines issued by the government authorities.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
