How has been the historical performance of Goodyear India?

Revenue and Profitability Trends

Net sales for Goodyear India have shown a mixed trajectory, peaking at ₹2,927.51 crores in March 2023 before moderating to ₹2,608.05 crores in March 2025. The company experienced a notable dip in sales during the pandemic-affected years 2020 and 2021, with ₹1,745.57 crores and ₹1,791.71 crores respectively, reflecting the broader industry slowdown. However, the recovery phase saw revenues rebound strongly in 2022 and 2023.

Operating profit margins, excluding other income, have contracted from a high of 12.1% in March 2021 to 4.47% in March 2025, signalling margin pressures possibly due to rising raw material and purchase costs. Indeed, raw material expenses increased from ₹637.16 crores in 2021 to ₹1,096.15 crores in 2025, while purchases of finished goods also rose significantly over the period. Despite these cost headwinds, Goodyear India maintained positive operating profits, with PBDIT (including other income) standing at ₹134.11 crores in 2025.

Profit After Tax and Earnings Per Share

Profit after tax (PAT) has mirrored the revenue and margin trends, peaking at ₹136.26 crores in March 2021 before declining to ₹55.12 crores in March 2025. Correspondingly, earnings per share (EPS) dropped from ₹59.06 in 2021 to ₹23.89 in 2025. The PAT margin contracted from 7.61% in 2021 to 2.11% in 2025, underscoring the impact of rising costs and possibly competitive pressures. Despite this, the company has avoided extraordinary or exceptional items, maintaining a clean earnings profile.

Balance Sheet and Asset Management

Goodyear India’s balance sheet reflects a stable equity base with share capital steady at ₹23.07 crores throughout the period. Shareholders’ funds decreased from ₹839.57 crores in 2021 to ₹602.95 crores in 2025, influenced by declining reserves. The company notably carries no long-term or short-term borrowings, indicating a debt-free status which is a positive for financial stability.

On the asset side, net block (fixed assets net of depreciation) increased moderately from ₹298.53 crores in 2021 to ₹339.89 crores in 2025, reflecting ongoing capital investments. Inventories and sundry debtors have also risen, consistent with higher sales volumes. Cash and bank balances, however, have declined from ₹596.56 crores in 2021 to ₹194.15 crores in 2025, suggesting increased utilisation of cash resources or investments elsewhere.

Cash Flow and Liquidity

Operating cash flow has been positive across the years, though it declined from ₹293 crores in 2021 to ₹131 crores in 2025. Investing activities have fluctuated, with a notable inflow in 2023 but outflows in other years, indicating variable capital expenditure patterns. Financing activities have consistently been negative, reflecting repayments or dividend payments rather than fresh borrowings. The net cash inflow in 2025 was ₹70 crores, a recovery from prior years’ outflows, supporting liquidity despite margin pressures.

Summary of Historical Performance

Over the past six years, Goodyear India has experienced a cyclical performance pattern, with revenues and profits impacted by external economic conditions and internal cost dynamics. The company’s ability to maintain profitability despite margin compression and rising raw material costs is noteworthy. Its debt-free status and consistent capital investment underpin a solid financial foundation, although declining cash reserves warrant attention. Investors should weigh these factors alongside sector trends when considering Goodyear India’s stock.

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