Goodyear India posts healthy Q4FY23 numbersGOODYEAR - 1296 Change: 1.55 (0.12 %)
News: Total topline for the quarter came in at Rs 652 crore, down 5.3% QoQ. EBITDA came in at Rs 57 crore, up 30% QoQ with margins at 8.7%, up 237 bps QoQ. Consequently, PAT was at Rs 33.6 crore, up 37.7% QoQ. The board also recommended a dividend of Rs 26.5 per share for FY23 ( consequent payout of ~50%). On a full year basis, the company reported 20% topline and bottomline growth.
Views: The company posted a healthy operational performance with positive surprise being expansion of gross margin by 450 bps QoQ with absolute margins still below industry average due to higher share of traded goods (~30-40%). The company’s performance in terms of topline was satisfactory given its focus (manufacturing) towards domestic farm tyre space (seasonality effect), we expect topline for the company to be steady in FY24E tracking high base attained during FY23. Management commentary suggests benign RM benefits to accrue in coming quarters as well with company focussing on expanding its distribution reach in domestic markets.