Professional Documents
Culture Documents
1
Selection of a Company and the event (Week-End Effect, Declaration
of Dividend, Mergers, etc.) and collection of data and brief Company
Profile
CEAT LIMITED
CEAT limited is an Indian multinational tyre manufacturing company owned by the RPG
Group. It was established in 1924 in Turin, Italy by Virginio Bruni Tedeschi.
Headquarters is located in Worli, Mumbai, India
Harsh Goenka is the Chairman and Anant Goenka is the MD of the company
It has a presence in global markets. CEAT produces over 165 million tyres a year and
manufactures tyres for passenger cars, two-wheelers, trucks and buses, light commercial
vehicles, earth-movers, forklifts, tractors, trailers, and auto-rickshaws. The current capacity of
CEAT tyres' plants is over 800 tonnes per day.
Tires are built to meet a range of specifications, such as ride comfort and low noise for
European regulation requirements, in addition to builds that permit higher life targets for
more industrial use.
CEAT. Income Statement Analysis
Operating income during the year fell 2.9% on a year-on-year (YoY) basis.
The company's operating profit increased by 12.7% YoY during the fiscal. Operating
profit margins witnessed a fall and down at 10.7% in FY20 as against 9.2% in FY19.
Depreciation charges increased by 43.5% and finance costs increased by 71.4% YoY,
respectively.
Other income declined by 47.4% YoY.
Net profit for the year declined by 8.4% YoY.
Net profit margins during the year declined from 3.6% in FY19 to 3.4% in FY20.
CEAT. Balance Sheet Analysis
The company's current liabilities during FY20 stood at Rs 23 billion as compared to Rs
21 billion in FY19, thereby witnessing an increase of 8.1%.
Long-term debt stood at Rs 16 billion as compared to Rs 12 billion during FY19, a
growth of 34.2%.
Current assets fell 9% and stood at Rs 18 billion, while fixed assets rose 29% and stood
at Rs 54 billion in FY20.
Overall, the total assets and liabilities for FY20 stood at Rs 74 billion as against Rs 64
billion during FY19, thereby witnessing a growth of 15%.
CEAT. Cash Flow Statement Analysis
CEAT.'s cash flow from operating activities (CFO) during FY20 stood at Rs 10 billion, an
improvement of 70.3% on a YoY basis.
Cash flow from investing activities (CFI) during FY20 stood at Rs -11 billion, an
improvement of 1.4% on a YoY basis.
Cash flow from financial activities (CFF) during FY20 stood at Rs 790 million on a YoY
basis.
Overall, net cash flows for the company during FY20 stood at Rs -402 million from the
Rs -146 million net cash flows seen during FY19.
The company's price to cash flow (P/CF) ratio stood at 9.2 times its end-of-year
operating cash flow earnings.
Over the last one year, CEAT. share price has moved up from Rs 947.1 to Rs 1,115.2,
registering a gain of Rs 168.2 or around 17.8%.