Ceat shares tank up to 10% on decline in Q4 net profit
Shares of tyre maker Ceat on Friday plunged up to 10% after the company reported a 23% drop in net profit at ₹102.3 crore for the March quarter from its previous year.
The stock opened at ₹2,539.9 apiece on the BSE, marking a decline of 3% from its previous closing level of ₹2,620.7. Continuing the downward trend, the stock further plummeted up to an intraday low of ₹2,383.35 apiece.
However, around 12.30 pm, the stock recoverd over 6% and was trading nearly 4% lower.
.The tyre maker released its results for the fourth quarter and financial year ending March 31, 2024, on Thursday, May 2 after the market hours.
Market experts attributed the decline in CEAT stocks to weaker-than-expected quarterly earnings.
In a stock exchange filing on Thursday, the tyre maker announced that its net profit dropped 22.76% year-on-year to ₹102.27 crore for the fourth quarter that ended March 31, 2024, from ₹132.4 crore in the year-ago period.
The company’s revenue from operations grew 4.1% to ₹2,991.9 crore compared to ₹2,874.8 crore in the same period last fiscal year.
Additionally, at the operating level, its EBITDA rose by 6.5% to ₹391.7 crore in this fiscal quarter from ₹367.8 crore in the corresponding period of the previous fiscal year.
The board has proposed a final dividend of ₹30 per equity share, equivalent to 300% of the face value of ₹10 each fully paid up, for the financial year ending March 31, 2024. This recommendation is subject to approval by the members at the upcoming annual general meeting.
Shares of Ceat were trading 3.9% lower at ₹2,520.05 apiece around 12.35 pm on Friday, May 4.