* EBITDA up by 10% YoY to Rs 202 Cr
* To enter OTR radial market with initial capex of Rs 330cr
Mumbai / Chennai, 12th February, 2016: CEAT Limited, an RPG Group company, announced their unaudited results for the third quarter ending 31st December, 2015. On a consolidated basis, the company’s PAT increased by 27% YoY to Rs 113 crore, while revenue declined marginally by 2% to Rs 1,374 crore. The EBITDA increased by 10% to Rs 202 crore on a YoY basis. The consolidated EBITDA margins rose to 14.7% in Q3 FY15-16 compared to 13.1% in Q3 last year.
On a standalone basis, PAT rose by 46% YoY to Rs 118 crore for the quarter. The standalone EBITDA for Q3 FY15-16 stood at Rs 197 crore which corresponded to an increase of 15% on a YoY basis. The standalone EBITDA margins stood at 14.9% in Q3 FY 15-16 compared to 12.7% in Q3 last year.
“Reduction in average borrowings levels coupled with reduction in interest rates led to interest costs reduction this quarter. Our debt/equity currently stands at a healthy 0.4,” Mr. Manoj Jaiswal, Chief Financial Officer, CEAT Ltd, said.
CEAT has made an equity investment of Rs 25 crore in its 100% subsidiary CEAT Specialty Tyres Limited (CSTL). Further, it has transferred its Ambernath land to CSTL which will be used for setting up a facility to manufacture OTR (off the road) radial tyres.
“Given the strong growth potential in the OTR sector and its synergy with CEAT capabilities, we have taken a strategic decision to increase our focus there. CSTL has been created to ensure dedicated focus and drive towards this opportunity. We will be investing Rs 330 crore for an initial capacity of 40 MT/day. The facility, with a primary focus on exports market, will witness phased expansion over the years,” Mr. Anant Goenka, Managing Director, CEAT Ltd said.
CEAT’s OEM segment started catering to Mahindra Imperio, Hero Maestro Edge and Duet models. Further, Royal Enfield Himalayan and Honda Navi was recently launched on CEAT. The company has further roped in one of India’s finest batsmen, Rohit Sharma, for a 3-year bat endorsement deal this quarter.
