4QFY2013 Result Update | Tyre

May 7, 2013

CEAT
Performance Highlights
Quarterly highlights (Standalone)
Y/E March (` cr) Net Sales EBITDA EBITDA margin (%) Adj. PAT 4QFY13 1,311 139 10.6 61 4QFY12 1,224 127 10.4 41 % chg (yoy) 7.1 9.9 28bp 47 3QFY13 1,205 102 8.5 31 % chg (qoq) 8.8 36.8 218bp 98.6

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Tyre 406 722 0.9 125/87 72,290 10 19,889 6,044 CEAT.BO CEAT@IN

`119 `170
12 Months

Source: Company, Angel Research

Ceat reported impressive performance for 4QFY2013 led by a strong sequential EBITDA margin expansion of 218bp driven by ~8% qoq decline in natural rubber prices. Consequently, net profit surged 98.6% qoq (47.1% yoy) to `61cr, which was significantly above our estimates of `35cr. While we broadly maintain our revenue and EBITDA margin estimates for Ceat; we revise our earnings estimates upwards by 12.1%/5.6% for FY2014/15, primarily to reflect the benefits of lower interest cost going ahead. The company has reduced its interest burden by ~270cr in 2HFY2013 and the full benefits of this would be reflected in FY2014. Due to attractive valuations we maintain our Buy rating on the stock. Impressive 4QFY2013 results: For 4QFY2013, standalone top-line reported a slightly better-than-expected growth of 7.1% yoy (8.8% qoq) to `1,311cr which was driven by a strong volume growth of 9.3% yoy (11.3% qoq). The volume growth was led by a strong ~24% yoy (~21% qoq) growth in the OEM segment led by new partnerships with Hyundai, Royal Enfield, Volvo-Eicher and Bajaj Auto. The replacement segment however, posted a muted growth of 1.2% as the demand in the segment remains weak. Net average realization registered a decline of ~2% yoy and qoq, largely due to adverse product-mix (higher OEM share in total-mix). On the operating front, EBITDA margins jumped sharply by 218bp qoq to 10.6% against our expectations of 8.8%, as raw-material cost as a percentage of sales witnessed a significant decline of 206bp qoq led by ~8% decline in the natural rubber prices. Led by a strong operating performance, net profit on a sequential basis witnessed a significant growth of 98.6% to `61cr. Outlook and valuation: We retain our positive view on Ceat and believe that the company will continue to benefit from softening of commodity prices and lower debt burden. However, slowdown in demand due to lower-than-expected pick-up in replacement segment along with pressures from OEM to reduce prices may adversely impact the company. At `119, the stock is trading at attractive valuations of 2.4x FY2015E earnings. We maintain our Buy rating on the stock with a target price of `170.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 54.2 17.8 0.0 28.0

Abs. (%) Sensex CEAT

3m 1.6 9.4

1yr 17.6 14.0

3yr 18.6 (10.3)

Key financials (Standalone)

Y/E March (` cr) Net Sales % chg Adj. net profit % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2012 4,476 27.9 11 (61.2) 5.6 3.1 38.0 0.6 1.6 10.5 0.3 5.5

FY2013E 4,881 9.1 134 1154.1 8.8 39.2 3.0 0.5 19.1 20.4 0.2 2.6

FY2014E 5,325 9.1 140 4.1 8.4 40.8 2.9 0.5 17.3 21.2 0.2 2.3

FY2015E 5,974 12.2 166 18.9 8.3 48.5 2.4 0.4 17.6 21.9 0.2 1.9

Yaresh Kothari
022-3935 7800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

CEAT | 4QFY2013 Result Update

Exhibit 1: Financial performance (Standalone)

Y/E March (` cr) Volume (MT) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Purchase of traded goods (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adjusted PAT Adj. PATM Equity capital (cr) Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

4QFY13 59,000 1,311 858 65.4 77 5.8 17 1.3 220 16.8 1,171 139 10.6 45 20 4 78 78 6.0 18 22.4 61 61 4.6 34.2 17.8 17.8

4QFY12 54,000 1,224 858 70.1 58 4.8 12 0.9 170 13.9 1,097 127 10.4 54 19 6 60 60 4.9 18 30.9 41 41 3.4 34.2 12.1 12.1

% chg (yoy) 9.3 7.1 0.0 31.6 45.5 29.5 6.7 9.9 (16.1) 4.2 (32.4) 31.1 31.1 (5.0) 47.1 47.1

3QFY13 53,000 1,205 806 66.9 69 5.7 23 1.9 205 17.0 1,103 102 8.5 47 20 3 39 (14) 25 2.1 8 32.4 17 31 2.5 34.2

% chg (qoq) 11.3 8.8 6.4 10.9 (26.3) 7.3 6.2 36.8 (2.6) (2.1) 18.1 102.2 212.2 115.9 258.2 98.6

FY2013 214,500 4,881 3,309 67.8 269 5.5 69 1.4 810 16.6 4,457 425 8.7 194 78 21 173 (28) 146 3.0 39 27.0 106 134 2.7 34.2

FY2012 202,100 4,476 3,298 73.7 217 4.8 52 1.2 663 14.8 4,229 247 5.5 192 70 29 13 (3) 10 0.2 2 22.5 8 11 0.2 34.2 2.2 3.1

% chg (yoy) 6.1 9.1 0.4 24.3 33.1 22.1 5.4 72.0 1.2 10.9 (25.2) 1,247.6 1,400.9 1,706.4 1,312.5 1,154.1

47.1 47.1

5.0 9.0

258.2 98.6

31.1 39.2

1,312.5 1,154.1

Top-line grows slightly ahead of estimates: For 4QFY2013, standalone top-line reported a slightly better-than-expected growth of 7.1% yoy (8.8% qoq) to `1,311cr which was driven by a strong volume growth of 9.3% yoy (11.3% qoq). The total volumes in tonnage terms for the quarter stood at 59,000MT and were driven primarily by a strong 24.2% yoy (21% qoq) growth in the OEM segment led by new partnerships with Hyundai, Royal Enfield, Volvo-Eicher and Bajaj Auto. The replacement segment however, posted a muted growth of 1.2% as the demand in the segment remains weak. The sales-mix for 4QFY2013 in the replacement, OEM and export segments stood at 50%, 25% and 25% respectively as against 54%, 22% and 24% respectively in 4QFY2012. Ceats net average realization in 4QFY2013 registered a decline of 2.2% yoy (2.4% qoq) largely due to adverse product-mix (higher OEM share in total-mix).. Ceat operated at capacity utilization levels of ~80% at the Halol plant. The Halol plant contributed ~16% to total volumes during FY2013.

May 7, 2013

CEAT | 4QFY2013 Result Update

Exhibit 2: Net sales up 7.1% yoy driven strong growth in volumes

(` cr) 1,400 1,200 1,000 800 600 400 200
18.8 10.3

Net sales (LHS) 1,077 998

38.5 31.4 27.8 22.7

Net sales growth (RHS) 1,224 1,187 1,173 1,205 1,311

(%) 45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0

1,107

1,063

7.1 6.0 13.3

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

Source: Company, Angel Research

Operating margin improves further to 10.6%: On the operating front, EBITDA margins jumped sharply by 218bp sequentially to 10.6% against our expectations of 8.8%, as raw-material cost as a percentage of sales witnessed a significant decline of 206bp qoq led by ~8% decline in the natural rubber prices. On a yoy basis, EBITDA margins expanded marginally by 28bp as benefits of lower natural rubber prices (down ~16% yoy) were offset by increase in higher employee and other expenditure (due to increased marketing spends).

Exhibit 3: Average natural rubber price trend

( ` /kg) 250 200 150
98 102 142 119 165 177 195 225 229 211 203 191 193

Exhibit 4: EBITDA margin at 10.6%

(%) 90.0 80.0
181 174 160

78.9

EBITDA margin 80.6 75.0 74.5

Raw material cost/sales 71.0 71.0 71.4 68.8 66.7

70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1.9 (0.4) 5.6 6.2 10.4 8.8 6.7 8.5

100 50 0

72

4QFY13
3QFY13

10.6

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

4QFY09

2QFY10

4QFY10

2QFY11

4QFY11

2QFY12

4QFY12

2QFY13

4QFY13

(10.0)

Source: Company, Angel Research

Source: Company, Angel Research

Adjusted net profit surges to `61cr: Led by a strong operating performance, net profit on a sequential basis witnessed a significant growth of 98.6% to `61cr. On a yoy basis too, net profit posted a strong growth of 47.1% yoy aided by lower interest expense (due to reduction in debt levels) and lower tax outgo (tax-rate at 22.4% as against 30.9% in 4QFY2012).

May 7, 2013

4QFY13

CEAT | 4QFY2013 Result Update

Exhibit 5: Net profit jumps significantly to `61cr

(` cr) 80 60 40 3.4 2.2 2.6 2.5
Net profit (LHS) Net profit margin (RHS)

(%) 4.6 6.0 5.0 4.0 3.0 2.0 1.0 0.0 (1.0) (2.0) (3.0) (4.0) (5.0)

41

26

31

31

4QFY11 (12)

1QFY12 (39)

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

(20) (40) (60)

(1.2)

(3.6)

Source: Company, Angel Research

Exhibit 6: Financial performance (Consolidated)

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Purchase of traded goods (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT Adjusted PAT Adj. PATM Equity capital (cr) Reported EPS (`) Adjusted EPS (`)
Source: Company, Angel Research

4QFY13 1,346 880 65.4 81 6.0 13 1.0 228 16.9 1,201 145 10.7 46 20 6 84 84 6.3 19 23.0 65 65 4.8 34.2 19.0 19.0

4QFY12 1,273 881 69.2 61 4.8 10 0.8 177 13.9 1,130 143 11.2 55 19 68 68 5.3 19 28.2 49 49 3.8 34.2 14.3 14.3

% chg (yoy) 5.7 (0.2) 31.8 25.4 28.5 6.3 1.1 (17.3) 3.4 23.9 23.9 1.0 32.8 32.8

3QFY13 1,249 831 66.6 73 5.8 22 1.7 213 17.0 1,138 111 8.9 47 21 3 46 (14) 33 2.6 10 31.1 22 36 2.9 34.2

% chg (qoq) 7.8 5.8 11.4 (40.7) 7.3 5.6 30.6 (3.2) (2.1) 67.4 82.4 158.9 91.7 189.2 79.8

FY2013 5,052 3,417 67.6 283 5.6 59 1.2 839 16.6 4,598 455 9.0 198 81 18 194 (28) 167 3.3 46 27.8 120 148 2.9 34.2

FY2012 4,653 3,416 73.4 228 4.9 47 1.0 689 14.8 4,379 274 5.9 196 73 22 27 (3) 24 0.5 6 24.9 18 21 0.5 34.2 5.3 6.2

4QFY13

0.2

61

20

0.5

% chg (yoy) 8.6 0.0 24.4 25.4 21.7 5.0 66.1 0.9 10.7 (20.6) 609.5 587.7 669.3 560.7 592.7

32.8 32.8

6.6 10.5

189.2 79.8

35.1 43.2

560.7 592.7

May 7, 2013

CEAT | 4QFY2013 Result Update

Conference call Key highlights

The Management has indicated that the demand environment is expected to remain muted across all the segments in FY2014. According to the Management, the softening of natural rubber prices will ensure that the companys operating margins remain stable going ahead. However, there are pressure from the OEMs to reduce prices which is concerning. The company has slashed the prices by ~2% in March 2013. Ceat has signed a joint venture (JV) agreement with A K Khan and Company, a Bangladesh based business house, to set up a bias tyre manufacturing facility in Bangladesh. Ceat will hold 70% in the JV Company. The balance 30% will be held by A K Khan and Company. The JV would entail an investment of US$67mn (`355cr) towards the new plant and is expected to commence operations by 2HFY2015. The JV has completed the process of land acquisition. The Management is targeting to increase its presence in the higher margin two-wheeler tyres where there is less competition. The company has managed to increase its market share in the two-wheeler tyre segment to ~19% from ~14% in 1QFY2013. Ceat is operating at ~70-75% utilization levels across all its plants. Around 20-25% of the raw-material requirement of Ceat is currently imported. The company reported a 4% yoy growth in net sales to `384cr in FY2013 in its Sri Lanka operations with EBITDA margins at ~17%. While the volumes remained mostly flat at 15,000MT; net average realization registered a strong growth driven by better-product-mix and price increases. EBITDA margin expansion was led by decline in natural rubber prices. As a result, operating and net profit reported a strong growth of 39% and 46% yoy to `64cr and `39cr respectively. The current capacity in Sri Lanka stands at 60TPD. The exports from Sri Lanka operations account for ~35% of its revenues. The realization on the exports front is generally lower. The Management stated that the consolidated debt has been reduced by ~270cr in 2HFY2013 and currently stands at `1,038cr.

May 7, 2013

CEAT | 4QFY2013 Result Update

Investment arguments
Tyre industry Set for a structural shift: Currently, manufacturing radial tyres is far more capital intensive than cross-plys. The investment per tpd for radial tyres is 3.2x of cross-plys at `6.1cr/tpd. On the other hand, the selling price of radial tyres is around 20% higher than cross-ply tyres. Taking into account the difference in capital requirements and the consequent impact on asset turnover, for interest cost and depreciation to generate a similar RoCE and RoE, tyre companies would need to earn EBITDA margins of around 21% compared to around 9% being earned on cross-ply tyres. Thus, higher capital requirements will help protect margins from upward-bound input costs, as the business model evolves bearing in mind the final RoE rather than margins. With the sector set for a structural shift and apparent pricing flexibility, it will result in an improvement in RoCE and RoE of tyre manufacturers going forward. Volume growth to benefit from capacity expansion: Ceat is ramping up its radial capacity at the Halol plant to 150TPD, which is likely to be fully operational in FY2015. With the completion of the proposed expansion, the product mix of truck : non-truck is likely to improve to 55:45, thereby fetching better margins. Increasing focus on exports: Ceat has been increasingly focusing on exports, especially the high-margin specialty tyres, in a bid to offset volatility in its domestic tyre business in the long run.

Outlook and valuation

While we broadly maintain our revenue and EBITDA margin estimates for Ceat; we revise our earnings estimates upwards by 12.1%/5.6% for FY2014/15, primarily to reflect the benefits of lower interest cost going ahead. The company has reduced its interest burden by ~270cr in 2HFY2013 and the full benefits of this would be reflected in FY2014. We expect Ceat to post an EPS of `40.8 and `48.5 in FY2014 and FY2015 respectively.

Exhibit 7: Change in estimates

Y/E March Net Sales (` cr) OPM (%) Net profit (` cr) Earlier Estimates FY2014E 5,375 8.3 124 FY2015E 6,004 8.3 157 Revised Estimates FY2014E 5,325 8.4 140 FY2015E 5,974 8.3 166 % chg FY2014E (0.9) 5bp 12.1 FY2015E (0.5) (4)bp 5.6

Source: Company, Angel Research

We retain our positive view on Ceat and believe that the company will continue to benefit from softening of commodity prices and lower debt burden. However, slowdown in demand due to lower-than-expected pick-up in replacement segment along with pressures from OEM to reduce prices may adversely impact the company. At `119, the stock is trading at attractive valuations of 2.4x FY2015E earnings. We maintain our Buy rating on the stock with a target price of `170.

May 7, 2013

CEAT | 4QFY2013 Result Update

Key downside risks to our call: Any rise in input costs, increasing competitive intensity with major players diversifying globally, and lower-than-anticipated growth in replacement tyre demand pose downside risks to our estimates.

Exhibit 8: One-year forward P/BV band

(` ) 300 250 200 150 100 50 0 CMP 0.2 0.5 0.8 1.1

Exhibit 9: One-year forward EV/EBITDA band

( ` cr) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 EV (` cr) 2.0x 4.0x 6.0x 8.0x

Feb-04

Feb-09

May-13

Dec-04

Dec-09

Jun-07

Aug-06

Aug-11

Apr-03

Oct-05

Apr-08

Oct-10

Jun-12

Feb-04

Feb-09

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 10: Auto Ancillary Recommendation summary

Company Apollo Tyres* CEAT JK Tyre* Reco. Neutral Buy Buy CMP (`) 100 119 116 Tgt. price (`) 170 154 Upside (%) 43.0 33.3 P/E (x) FY14E 7.4 2.9 3.1 FY15E 6.3 2.4 2.6 EV/EBITDA (x) FY14E 4.4 2.3 4.1 FY15E 3.8 1.9 3.9 RoE (%) FY14E 18.4 17.3 16.4 FY15E 18.2 17.6 16.6 FY13-15E EPS CAGR (%) 12.6 11.3 4.4

Source: Company, Angel Research; Note: *Consolidated

Company background
Ceat, a part of the RPG Group, is amongst the leading tyre manufacturers in the country with an overall market share of ~12%. The companys manufacturing facilities are located in Bhandup, Nashik and Halol. The company has an overall production capacity of around 780TPD (including outsourced). It exports to countries across Asia, Africa, Europe and America. Exports constitute 22-24% of Ceat's total volumes. The company has recently acquired the global rights of the Ceat brand from Italian tyre maker Pirelli - this will enable the company to expand its global presence. Ceat also operates in Sri Lanka through a JV and has a ~50% share in Sri Lanka's tyre market.

May 7, 2013

May-13

Dec-04

Dec-09

Jun-07

Aug-06

Aug-11

Apr-03

Oct-05

Apr-08

Oct-10

Jun-12

CEAT | 4QFY2013 Result Update

Profit and loss statement (Standalone)

Y/E March (` cr) Total operating income % chg Total expenditure Net raw material costs Other mfg costs Employee expenses Other EBITDA % chg (% of total op. income) Depreciation & amortization EBIT % chg (% of total op. income) Interest and other charges Other income Recurring PBT % chg Extraordinary items PBT (reported) Tax (% of PBT) PAT (reported) ADJ. PAT % chg (% of total op. income) Basic EPS (`) Adj. EPS (`) % chg FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 2,807 18.6 2,511 1,869 253 190 200 296 10.5 27 269 9.6 72 42 239 (0) 239 74 31.0 165 165 5.9 48.2 48.3 3,499 24.6 3,359 2,594 306 212 248 139 (52.9) 4.0 34 105 (60.9) 3.0 100 28 33 (86.1) (5) 39 11 28.5 22 28 (83.3) 0.8 6.5 8.0 (83.3) 4,476 27.9 4,229 3,349 381 217 282 247 77.1 5.6 70 176 67.7 4.0 192 29 13 (61.3) 3 10 2 22.5 8 11 (61.2) 0.2 3.1 3.1 (61.2) 4,881 9.1 4,457 3,378 427 269 383 425 72.0 8.8 78 346 96.4 7.2 194 21 173 1,247.6 28 146 39 27.0 106 134 1,154.1 2.8 39.2 39.2 1,154.1 5,325 9.1 4,878 3,662 471 309 437 447 5.2 8.4 86 361 4.2 6.8 177 24 208 20.1 0 208 69 33.0 140 140 4.1 2.6 40.8 40.8 4.1 5,974 12.2 5,481 4,108 534 349 490 493 10.3 8.3 91 402 11.2 6.7 181 27 248 18.9 0 248 82 33.0 166 166 18.9 2.8 48.5 48.5 18.9

May 7, 2013

CEAT | 4QFY2013 Result Update

Balance sheet statement (Standalone)

Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders Funds Total loans Deferred tax liability Other long term liabilities Long term provisions Total Liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Investments Long term loans and advances Other noncurrent assets Current assets Cash Loans & advances Other Current liabilities Net current assets Total Assets 1,256 487 769 234 59 1,032 140 109 782 790 241 1,303 1,882 520 1,361 107 87 22 1,222 48 126 1,048 1,212 10 1,586 2,112 588 1,524 13 74 8 1,369 33 143 1,192 1,229 139 1,759 2,115 666 1,449 63 45 118 11 1,370 81 121 1,167 1,418 (48) 1,638 2,198 751 1,446 66 53 118 11 1,558 131 138 1,288 1,490 68 1,762 2,281 843 1,438 68 57 118 11 1,824 224 155 1,445 1,605 219 1,911 34 594 629 654 20 1,303 34 615 649 904 24 1 8 1,586 34 622 656 1,071 22 1 8 1,759 34 712 747 804 75 1 12 1,638 34 836 870 804 75 1 12 1,762 34 985 1,020 804 75 1 12 1,911 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

May 7, 2013

CEAT | 4QFY2013 Result Update

Cash flow statement (Standalone)

Y/E March (` cr) Profit before tax Depreciation Change in working capital Others Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in fixed assets (Inc.)/Dec. in investments Other income Cash Flow from Investing Issue of equity Inc./(Dec.) in loans Dividend paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in cash Opening Cash balances Closing Cash balances FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E 239 27 (260) 343 (42) (74) 233 (237) (16) 42 (210) 9 0 (93) (84) (61) 202 140 39 34 131 80 (28) (11) 244 (499) (28) 28 (498) 250 16 (104) 162 (92) 140 48 10 70 (144) 173 (29) (2) 78 (136) 12 29 (95) 167 8 (16) 159 (15) 48 33 146 78 235 (64) (21) (39) 334 (54) 30 21 (2) (267) 16 (283) 48 33 82 208 86 (66) (24) (69) 136 (85) (8) 24 (69) 16 (16) 50 82 132 248 91 (59) (27) (82) 172 (85) (4) 27 (63) 16 (16) 92 132 224

May 7, 2013

10

CEAT | 4QFY2013 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Dupont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROCE (Pre-tax) Angel ROIC (Pre-tax) ROE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Int.) 0.7 1.5 3.7 1.2 5.5 1.0 1.5 3.9 0.9 0.9 1.6 1.8 0.7 1.4 2.0 0.5 1.1 2.2 2.3 41 45 81 14 2.2 51 45 102 3 2.2 47 45 98 3 2.3 42 47 96 (1) 2.6 41 47 95 (7) 3.0 41 47 91 (2) 21.9 24.4 29.6 7.3 7.2 4.3 10.5 10.7 1.6 20.4 22.9 19.1 21.2 22.9 17.3 21.9 24.6 17.6 9.6 0.7 2.8 18.5 7.7 0.8 26.8 3.0 0.7 2.7 5.9 9.2 1.0 2.7 4.0 0.8 2.9 8.9 15.1 1.3 0.7 7.2 0.7 3.1 16.1 15.1 1.2 17.3 6.8 0.7 3.4 15.7 14.7 0.8 16.4 6.7 0.7 3.7 16.8 15.1 0.6 17.8 48.2 48.3 55.0 4.0 183.6 6.5 8.0 18.0 2.0 189.6 3.1 3.1 22.8 1.0 191.7 39.2 39.2 53.9 4.0 218.0 40.8 40.8 65.8 4.0 254.1 48.5 48.5 75.1 4.0 297.8 2.5 2.2 0.6 3.4 0.3 2.9 0.7 18.2 6.6 0.6 1.7 0.3 8.4 0.7 38.0 5.2 0.6 0.8 0.3 5.5 0.8 3.0 2.2 0.5 3.4 0.2 2.6 0.7 2.9 1.8 0.5 3.4 0.2 2.3 0.6 2.4 1.6 0.4 3.4 0.2 1.9 0.5 FY2010 FY2011 FY2012 FY2013E FY2014E FY2015E

May 7, 2013

11

CEAT | 4QFY2013 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

CEAT No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to -15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 7, 2013

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