Goodyear India Ltd share Price Today

Goodyear India (GIL) is a global tyre manufacturer with presence in India since 1922 and first manufacturing plant commissioned in 1961. The listed entity manufactures farm tyre (tractor) and commercial truck tyres while it trades in passenger car radial tyres (manufactured by sister concern operating in India).

• FY22 Mix: Manufacturing: ~59%; Trading: ~41%

The company posted muted operational performance in Q4FY22

• Total consolidated operating income was down 1.1% QoQ to ₹598.2 crores
• EBITDA came at ₹33.5 crores with margins flat QoQ at 5.6%
• Consolidated PAT at ₹17.4 crores was down 11% QoQ

Auto Tyres & Rubber Products company Goodyear India announced Q4FY24 & FY24  results:

Q4FY24 Financial Highlights:

• The company's fourth quarter revenue was Rs 554 crore, lower by 16% from a year ago.
• Fourth quarter profit before tax (PBT) was Rs (5) crore compared to Rs 46 crore in the prior year. Year-over-year profit was lower due to lower volume and provision related to EPR.

FY24 Financial Highlights:

• Gil's total income for FY24 were Rs 2,569 crore, lower by 13% from the same period last year primarily driven by lower sales due to subdued demand.
• FY24, profit before tax was Rs 128 crore compared to Rs 165 crore a year ago, decrease of 23% is driven primarily due to lower volume and provision for EPR partially offset by reduced raw material cost.
• As of Mar 31, 2024, the Company had Cash & bank balance of Rs 124 crore. In comparison, the Company had Rs 163 crore cash as of March 31 , 2023.
• The company had declared a dividend of Rs 26.5 per equity share for financial year 2022-23 and a special interim dividend of Rs 26 per equity share of Rs 10 each for FY24, resulting in cash outflow of Rs 121 crore. Capex spend during the year is Rs 40 crore.
• The Board of Directors has recommended a total dividend of Rs 15/- per equity share of Rs 10 each for the financial year 2023-2024, subject to approval of the Members at the ensuing Annual General Meeting of the Company.

Sandeep Mahajan, Chairman & Managing Director of Goodyear India Ltd said, "We have witnessed demand pressure in both Farm and Passenger Car Tyres due to subdued industry, predominantly in Farm due to downturn in Tractor Industry which has shown a double-digit de-growth during the quarter. Our company is one of the prominent players with substantial share of business with Farm OEMs, which has remained under pressure due to cyclical nature of the industry. Rural demand has remained soft as well which has further impacted our Farm replacement business. Profitability has been impacted due to lower sales volumes and resultant production cut".

Mahajan added, "The Ministry of Environment, Forest and Climate change notifies Extended Producer Responsibility (EPR) rules for waste tyres applicable to tyre manufacturers amongst others. The Company has a present legal obligation to fulfill the liability of FY23 and FY24 arising from the said rules. Accordingly, The Company has provided Rs.14 crore in the current quarter which is a one-time charge and has further impacted the profitability of the quarter."

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