The share price of tyre manufacturer CEAT rallied over 6 percent in the early trade on Friday after the company reported better operating performance and robust margin growth in the fourth quarter of FY 2020. The stock gained 6.34 percent to touch its intraday high of Rs 820 apiece on the BSE.
At 11:49 am, shares of CEAT traded 3.62 percent higher at Rs 799 per share on the BSE.
The company's net profit in Q4FY20 fell 19.3 percent to Rs 51.88 crore from Rs 64.25 crore in Q4FY19. CNBC-TV18 analysts' poll had estimated a profit of Rs 52.5 crore. Profit for the quarter was hit by an exceptional loss of Rs 28 crore relating to VRS for employees and COVID-19 related provisions.
Revenue during the quarter declined 10.6 percent to Rs 1,573.41 crore as compared to Rs 1,760.5 crore in the same quarter last year.
The operating performance of the company improved as EBITDA increased 23.4 percent to Rs 200 crore from Rs 162.3 crore, YoY. EBITDA margin expanded by 350 bps to 12.7 percent from 9.2 percent.
“We managed to deliver good improvement in EBITDA margins in Q4 despite a drop in revenues in the second half of March due to COVID-19. Better product mix, lower raw material cost and strong cost controls helped in the expansion of margins," the company said.