BackApollo Tyres share price drops 2% as tyre production suspended in Gujarat unit
Apollo Tyres shares drop over 2% on news of tyre production suspension at its Gujarat plant due to labour disagreement.
PremiumApollo Tyres share price dropped over 2% on Thursday's session following the news of tyre production been suspended at Limda, Gujarat, manufacturing site owing to a labour disagreement. Apollo Tyres shares opened at ₹369.85 apiece on BSE.
The company stated in an exchange filing that the manufacture of bias and OTR tyres at its factory in Limda, Gujarat has been stopped due to some concerns among shop floor employees on the renewal of the long-term settlement agreement.
To address their issues and reach a mutually agreeable settlement, the company is in talks and negotiations with the labour union leaders.
The company is committed to promoting the interests of its stakeholders, its employees, and the organisation's long-term stability. Plans are in place to minimise potential supply disruptions, and the company is actively monitoring the situation, informed the company in its filing.
There is no material impact on the operations at this stage, said the company in an exchange filing.
On the technical front, according to analysts, Apollo Tyres stock price today experienced a downward gap in its opening, but there hasn't been significant activity in the first few minutes. Over the past month, the stock prices have notably declined, performing worse than the overall market.
“Looking ahead, the prevailing trend remains pessimistic, although there is robust support observed in the range of 355 to 360, corresponding to the 200-day simple moving average. Given the oversold conditions, traders may consider accumulating this stock at the specified average levels. The immediate hurdle for the stock is at 400," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.
According to trendlyne data, Apollo Tyres stock price rose 31.5% and underperformed its sector by 0.8% in the past year.
Apollo Tyres's consolidated net profit jumped two-fold to ₹397 crore for the June quarter against ₹177 crore in the corresponding period last year.
The company reported a bigger-than-expected rise in quarterly profit, boosted by lower rubber costs and robust domestic auto sales across markets.
Revenue from operations for the quarter increased 5% to close at ₹6,245 crore in the June quarter, as against ₹5,942 crore in the year-ago period, the company said in a statement.
Also Read:Apollo Tyres Q1 net profit jumps to ₹397 crore on lower costs
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