BackApollo Tyres Q3 net profit rises 51% to Rs278 crore
Apollo Tyres net sales were down 3.6% to Rs2,930 crore
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Chennai: Apollo Tyres Ltd on Tuesday reported a 51% rise in net profit for the quarter ended 31 December, falling short of estimates, as a slowdown in the truck and bus radial segment along with cheaper Chinese imports affected the company’s sales.
Net profit of India’s second-largest tyre maker rose to ₹ 278.5 crore from ₹ 184.24 crore in the year-ago period. A Bloomberg poll of analysts had forecast a net profit of ₹ 270.40 crore.
Net sales were down 3.6% to ₹ 2,930 crore, falling well below the Bloomberg estimates of ₹ 3,050.70 crore. The company posted sales of ₹ 3,040 crore a year ago.
“Despite our volumes going up, especially in India, we have reported flat revenues, as we have passed on the benefit of cooling raw material prices to our customers. This, in addition to the increasing import of cheap tyres into the country, has impacted our revenues," said Onkar S Kanwar, chairman, Apollo Tyres.
Operating profitability or Ebitda (earnings before interest, taxes, depreciation and amortization) rose 17.2% to ₹ 505.5 crore.
On Tuesday, Apollo Tyres shares closed at ₹ 135.05 apiece, down 1.60%, as the benchmark index Sensex lost 1.10% to close the day at 24,020.98 points.
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