Shares of CEAT rose more than 5.5% to a high of Rs 1,748 in intraday trade on Friday after the tire maker reported a more than five-fold jump in fourth-quarter net profit.

The stock was quoted at Rs 1,724 at 12:10 pm, still up more than 4% in an otherwise weak market. The S&P BSE Sensex fell 0.8% to 61,249.

The stock has risen more than 26% since the end of February 2023, compared with a gain of 5.5% for the benchmark index.

CEAT on Thursday reported a surge in net profit of 420.7% to Rs 132.42 crore for the quarter ended March 2023, compared to Rs 25.43 crore a year earlier. Total revenue rose 10.9% YoY to Rs 2,877.21 crore. The company’s board also declared a dividend of Rs 12 per share.

In FY23, net profit rose 279.7% to Rs 206.27 crore from Rs 54.33 crore in FY22. Total revenue rose nearly 21% to Rs 11,263.26 crore.

CEAT Chief Financial Officer Kumar Subbiah commented on the results: “We are pleased to share that our margins have expanded, and we are back to double-digit margins for the quarter. As part of our ongoing efforts to improve cash flow efficiencies, which on the back of improved operating performance and overall inventory reduction, helped us reduce the debt of about Rs 250 crore in the quarter backed by improved operational performance and reduction in overall inventories. Lower raw material prices and sustained product realization helped expand gross and EBITDA margins by 422 basis points in the quarter. The actual capex for the year is close to Rs 900 crore, which aligns with our plan to try to raise funds through internal accruals.”

In early April, CARE Ratings reaffirmed its CARE AA, a stable outlook for the company’s long-term bank funding and a CARE A1+ outlook for its short-term bank funding.