January 19, 2022

BSE Limited

National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers,

Exchange Plaza,

Dalal Street,

Bandra Kurla Complex, Bandra (East),

Mumbai 400 001

Mumbai 400 051

Security Code: 500878

Symbol: CEATLTD

NCD Symbol: CL23, CL25

CP Listed ISIN: INE482A14AR9, INE482A14AT5,

INE482A14AU3, INE482A14AV1, INE482A14AW9,

INE482A14AY5

Dear Sirs /Madam,

Sub: Outcome of the Board Meeting held on January 19, 2022

Pursuant to the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors of the Company at its meeting held today, i.e. on Wednesday, January 19, 2022, inter-alia, considered and unanimously approved the Unaudited Standalone and Consolidated Financial Results of the Company, for the quarter and nine months ended December 31, 2021, which are enclosed herewith, together with the respective Limited Review Reports issued thereon by the Statutory Auditors of the Company and taken on record by the Board.

The Board meeting commenced at 3.00 p.m. and concluded at 6.30 p.m.

We request you to kindly take the above on record.

Thanking you,

Sincerely,

For CEAT Limited

Vallari Gupte

Company Secretary & Compliance Officer

Encl: as above

12th Floor, The Ruby

29 Senapati Bapat Marg

Chartered Accountants

Dadar (West)

Mumbai - 400 028, India

Tel: +91 22 6819 8000

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

CEAT Limited

  1. We have reviewed the accompanying statement of unaudited standalone financial results of CEAT Limited (the "Company") for the quarter ended December 31, 2021 and year to date from April 1, 2021 to December 31, 2021 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
  2. The Company's Management is responsible for the preparation of the Statement in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 and 52 of the Listing Regulations. The Statement has been approved by the Company's Board of Directors. Our responsibility is to express a conclusion on the Statement based on our review.
  3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
  4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm registration number: 324982E/E300003

SUDHIR

MURLIDHAR

SONI

Digitally signed by SUDHIR MURLIDHAR SONI

DN: cn=SUDHIR MURLIDHAR SONI, c=IN, o=Personal, email=sudhir.soni@srb.in

Date: 2022.01.19 17:45:30 +05'30'

per Sudhir Soni Partner Membership No.: 41870

UDIN: 22041870AAAAAC8490

Place: Mumbai

Date: January 19, 2022

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318

Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

CEAT LIMITED

CIN : L25100MH1958PLC011041

Registered Office

RPG House, 463, Dr. Annie Besant Road, Mumbai 400 030.

Statement of Unaudited Standalone financial results for the quarter and nine months ended December 31, 2021

Standalone

(₹ in lacs)

Quarter ended

Nine months ended

Year ended

Particulars

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

31-Mar-21

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Audited

1

INCOME

2

Revenue from operations

2,40,612

2,43,232

2,21,248

6,73,620

5,29,376

7,57,279

3

Other income (Refer note 5)

1,887

261

996

2,362

2,870

3,180

4

Total income [2+3]

2,42,499

2,43,493

2,22,244

6,75,982

5,32,246

7,60,459

5

EXPENSES

a)

Cost of materials consumed

1,51,354

1,61,678

1,21,979

4,41,843

2,72,836

4,17,376

b)

Purchases of stock-in-trade

99

193

158

533

689

1,009

c)

Changes in inventories of finished goods, work-in-progress and stock-in trade

7,734

(8,285)

(1,486)

(13,220)

19,013

6,743

d)

Employee benefits expenses

17,006

16,998

17,845

51,529

48,656

66,713

e)

Finance costs

5,405

4,869

4,116

14,800

13,384

17,305

f)

Depreciation and amortisation expenses

10,855

12,060

8,727

32,560

24,971

33,958

g)

Other expenses

51,195

51,021

50,169

1,41,360

1,16,337

1,68,059

Total expenses

2,43,648

2,38,534

2,01,508

6,69,405

4,95,886

7,11,163

6

Profit / (Loss) before exceptional items and tax [4-5]

(1,149)

4,959

20,736

6,577

36,360

49,296

7

Exceptional items (Refer note 3)

652

51

1,227

703

3,406

3,406

8

Profit / (Loss) before tax [6-7]

(1,801)

4,908

19,509

5,874

32,954

45,890

9

Tax expenses

a)

Current tax charge / (credit)

(533)

386

3,395

-

5,050

3,660

b)

Deferred tax charge / (credit)

219

926

3,359

1,770

724

866

10

Profit / (Loss) for the period [8-9]

(1,487)

3,596

12,755

4,104

27,180

41,364

11

Other comprehensive income

a) i) Items that will not be reclassified to profit or loss

129

(155)

(188)

(71)

(202)

391

ii) Income tax relating to above

(32)

39

66

18

71

(98)

b) i) Items that will be reclassified to profit or loss

(149)

(306)

25

(30)

(1,106)

(1,759)

ii) Income tax relating to above

38

77

(9)

8

381

516

Total other comprehensive income / (loss) for the period

(14)

(345)

(106)

(75)

(856)

(950)

12

Total comprehensive income / (loss) for the period [comprising profit and other comprehensive

(1,501)

3,251

12,649

4,029

26,324

40,414

income / (loss) for the period] [10+11]

13

Paid-up equity share capital

4,045

4,045

4,045

4,045

4,045

4,045

(Face value of the share - ₹ 10 each)

14

Other equity

3,12,429

15

Earnings per share (of ₹ 10 each) (not annualised except for year ended march)

a) Basic (in ₹)

(3.68)

8.89

31.53

10.15

67.19

102.26

b) Diluted (in ₹)

(3.68)

8.89

31.53

10.15

67.19

102.26

Notes:

  1. The unaudited standalone financial results of the Company for the quarter and nine months ended December 31, 2021 have been prepared in accordance with the Indian Accounting Standards ("Ind AS") as prescribed under section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules thereafter.
  2. The above unaudited standalone financial results of the Company for the quarter and nine months ended December 31, 2021 have been reviewed by the Audit Committee and thereafter approved by the Board of Directors at their meeting held on January 19, 2022. The statutory auditors have carried out a limited review of these results.
  3. The Company had introduced a Voluntary Retirement Scheme ('VRS') for its employees. The compensation in respect of employees who opted for VRS aggregated to ₹ 652 lacs for the quarter ended December 31, 2021, ₹ 51 lacs for quarter ended September 30, 2021, ₹ 1227 lacs for quarter ended December 31, 2020, ₹ 703 lacs for nine months ended December 31, 2021, ₹ 1,245 lacs for nine months ended December 31, 2020 and ₹ 1,245 lacs for year ended March 31, 2021, has been disclosed as an exceptional item. Further, exceptional items also includes ₹ 150 lacs pertaining to estimated loss due to fire at one of the Company's manufacturing facility for nine months ended December 31, 2020 and for year ended March 31, 2021.
    Exceptional items also includes expenses recognised towards unusable semi finished inventory and raw materials due to abrupt stoppage of facilities, borrowing costs not capitalised due to suspension of ongoing capital projects, contract manpower costs and detention charges (for the period attributable to the COVID-19) aggregating ₹ 2,011 lacs for nine months ended December 31, 2020 and for year ended March 31, 2021.
  4. The Company has considered the possible effects that may result from the COVID-19 pandemic in the preparation of these financial results including the recoverability of the carrying value of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of COVID- 19, the Company has, at the date of approval of these financial results, used internal and external sources of information and expects that the carrying value of the assets will be recovered. The impact of COVID-19 on the Company's financial results may differ from that estimated as at the date of approval of the same.
  5. During the quarter ended December 31, 2021, the Company has recognised dividend income amounting to ₹ 1,581 lacs from Associated CEAT Holdings Company (Pvt.) Limited, wholly owned subsidiary of the Company based in Sri Lanka and has been disclosed under "other income". The receipt of said dividend is pending, awaiting necessary approval.
  6. Additional disclosures as per regulation 52(4) and 54 of Securities Exchange Board of India (Listing, Obligations and Disclosure Requirements) Regulations, 2015 and relevant amendment rules thereafter:
    1. The listed non-convertible debentures of the Company aggregating ₹ 25,000 lacs, as at December 31, 2021, are secured by way of first pari passu charge over movable and immovable fixed assets of the Company situated at Ambernath. The asset cover thereof exceeds 125 percent of the principal amount and interest accrued thereon of the said debentures as at December 31, 2021.
    2. The commercial papers of the Company, having face value of ₹ 35,000 lacs, is outstanding as at December 31, 2021.

iii. Other disclosures:

Sr.

No.Particulars

  1. Net profit / (loss) after tax (₹ in lacs)
  2. Earnings per share (of ₹ 10 each) (in ₹) (not annualised except for year ended march)
  3. Operating margin (%)
    (EBITDA* / revenue from operations)

Quarter ended

Nine months ended

Year ended

31-Dec-21

30-Sep-21

31-Dec-20

31-Dec-21

31-Dec-20

31-Mar-21

(1,487)

3,596

12,755

4,104

27,180

41,364

(3.68)

8.89

31.53

10.15

67.19

102.26

5.50

8.89

14.73

7.66

13.57

12.86

(d)

Net profit margin (%)

(0.62)

1.48

5.77

0.61

5.13

5.46

(Net profit /(loss) after tax / revenue from operations)

(e)

Interest service coverage ratio (in times)

2.75

4.36

5.92

3.55

4.56

5.02

[(EBITDA* - tax expenses) / interest costs** for the period]

(f)

Debt service coverage ratio (in times) (not annualised except for year ended

0.77

1.35

2.39

1.87

3.15

3.86

march)

[(EBITDA* - tax expenses) for the period / (interest costs** for the period +

current maturities of long-term borrowings as at date)]

(g)

Bad debts to account receivable Ratio (%) (not annualised except for year

-

-

-

0.02

3.05

2.88

ended march)

(Bad debts for the period / average gross trade receivables)

(h)

Debtor turnover ratio (in times) (annualised)

9.28

10.11

10.85

9.06

9.43

9.44

(Revenue from sale of goods or services / average trade receivables)

(i)

Inventory turnover ratio (in times) (annualised)

9.48

9.17

12.99

10.09

8.33

8.02

(Cost of goods sold / average inventories of finished goods, work-in-progress

and stock-in trade)

(j) Capital redemption reserve (₹ in lacs)

390

390

390

390

390

390

(k)

Net worth (₹ in lacs)

3,13,222

3,14,723

3,02,384

3,13,222

3,02,384

3,16,474

(Equity share capital + other equity)

(l)

Debt / equity ratio (in times)

0.71

0.63

0.51

0.71

0.51

0.44

[Debt (debt comprises non-current borrowings and current borrowings) / net

worth]

(m) Current ratio (in times)

0.73

0.75

0.72

0.73

0.72

0.73

(Current assets / (current liabilities #)

(n)

Current liability ratio (in times)

0.62

0.65

0.59

0.62

0.59

0.63

(Current liabilities # / total liabilities)

(o)

Total debts to total assets (in times)

0.25

0.23

0.20

0.25

0.20

0.18

[(Non-current borrowings + current borrowings) / total assets]

(p) Long term debt to working capital (in times)

##

##

##

##

##

##

[(Non-current borrowings including current maturities of long-term

borrowings) / working capital]

(Working capital = current assets - current liabilities #)

  • EBITDA = Earnings before finance costs, tax expenses, depreciation and amortisation expenses, exceptional items and other income.
  • Interest costs include interest on borrowings and other finance charges, including interest capitalised and disclosed in exceptional items for the period.

  1. # Current liabilities include capital creditors and dealer deposits. ## Net working capital is negative.

  2. The Company's business activity falls within a single reportable business segment, viz. "Automotive Tyres, Tubes and Flaps".
  3. The figures for the previous periods have been regrouped wherever necessary to conform to the current period presentation.

By order of the Board

ANANT

Digitally signed

by ANANT

VARDHAN GOENKAVARDHAN

GOENKA

Date: 2022.01.19

17:10:38 +05'30'

Place: Mumbai

Anant Vardhan Goenka

Date: January 19, 2022

Managing Director

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CEAT Limited published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 15:01:05 UTC.