Apollo Tyres Q1 net profit dives 72% to Rs88.3 crore
New Delhi: Apollo Tyres on Friday reported 72% decline in its consolidated net profit at Rs88.3 crore for the quarter ended 30 June, due to pre-GST destocking by trade partners and higher expenses. The tyre maker had posted a net profit of Rs315.54 crore during the same period of the previous fiscal, Apollo Tyres said in a BSE filing.
The company said the first quarter revenue in India was subdued because of the “pre-GST destocking by the company’s business partners, and confusion over switchover from BS III to BS IV emission norms in commercial vehicles.”
Total expenses during the quarter under review stood at Rs3,423.9 crore as against Rs3,158.6 crore in the year ago period, up 8.39%. Apollo Tyres Chairman Onkar S Kanwar said: “The results reflect the impact of the rising raw material prices on our operations.
Raw material prices as a basket have jumped more than 30% in the first quarter, as compared to the same period last year, and has negatively impacted our margins.”
Meanwhile, the company said its board has approved raising Rs500 crore through issue of non-convertible debentures on private placement basis. The company’s stock closed 3.16% down at Rs262.35 apiece on BSE.
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