Apollo Tyres Revenue Increases By 10%; Net Profit Declines By 50%
Published On 07-Feb-2022
The increase in revenue is backed-up by solid performance in the European market and exports.
The homegrown tyre manufacturer Apollo Tyres has posted healthy growth in revenue in the third quarter of FY21-22. The consolidated revenue of the company from operations increased by 10 per cent in the quarter ended December last year.
The tyre brand posted consolidated revenue of INR 5,707 crore, which was 5,195 crores in the same period, last fiscal. The revenue of the nine months (Apr-Dec) closed at INR 15,369 crores, a 24 per cent gain over the same period the previous year.
The company has attributed the growth to the strong performance in the European operations, as well as, overseas exports. Apollo Tyres Chairman, Onkar Kanwar said that despite the impact on the economies during the Covid-19 period, the company has performed well in the third quarter, thanks to the solid growth of 11 per cent in the European markets and a healthy number of tyre exports from India.
Rising Cost Inflation could result in price hike
However, on the downside, the company’s net profit declined by 50 per cent year-on-year to INR 224 crores, from INR 444 crore in the corresponding period last year. According to Motilal Oswal, the financial products and services firm, the higher input cost has affected the business in India. And the same has been reiterated by the chairman of Apollo, Onkar Kanwar. According to his official statement, the company is considering taking action on pricing at an appropriate time, owing to the rising cost inflation, which is expected to be high in future terms.
The operating profit of the company also fell to INR 743 crore, as compared to INR 1030 crore in the same quarter previous fiscal 20-21. The company is also planning to expand its product range and footprint across the major markets in the coming months. This strategy will keep it in line with the solid demand momentum.
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