Apollo Tyres Set To Increase Product Prices By 3-5 Per Cent, Cites Rising Raw Materials Cost

Published On 16-Nov-2021By TyreDekho Team

If prices continue to remain high, the company may take a similar step in the next quarter.

 

The Indian tyre giant Apollo has announced to hike the prices of its products in the domestic market by 3-5 per cent in the third quarter.

The Indian tyre giant Apollo has announced to hike the prices of its products in the domestic market by 3-5 per cent in the third quarter. The reason cited behind the hike is the increasing commodity prices. And if the same continues to happen, the tyre maker may be forced to hike the prices in the fourth quarter as well. As per Apollo Tyres Vice Chairman and MD Neeraj Kanwar, till September, there is an average 9 per cent increase in tyre prices.

The Vice-Chairman also said that price will be increased in various segments in October-November, as the cost of raw material will play a significant role in deciding the future course of action. On asking how much further hike will be required to bridge the gap, he said it would depend on the prospects of the raw material in the fourth quarter.

Talking about the second quarter, the brand posted a 59 per cent decline in the standalone net profit at INR 89.65 crore, as against INR 216.24 crore in the same fiscal last year, due to high raw material cost. On the other hand, the standalone revenue of the company derived from operations was high at INR 3,649.71 crore, as compared to INR 2,911.57 crore in the last year same fiscal. Similarly, the consumed raw material cost in the second quarter rose to INR 2,471.63 crore, as against INR 1,527.06 crore last year in the same period.

Q2 Result: Apollo Tyres Registers Net Profit Of 174 Crore

Tata Punch To Come Fitted With Apollo Tyres

Neeraj Kumar also stated that business is steadily returning to a normal state of affairs after the Covid-19 pandemic, and it’s a promising sign. The company is witnessing constructive demand from the truck tyres OEM, while the same in the passenger segment continues to be afflicted due to deficiency of semiconductors in the market. He further added that demand in the replacement market is strong, however, due to inflation in the raw material, together with OEM production disturbance, there is a strain on the operating performance in the second quarter.  

At the global level, Apollo Tyres has been riding high as the firm posted a consolidated net profit of INR 174 crore in the second quarter, ending September. It is against the INR 246 crore net loss in the same period last year. From April to September, the tyre maker posted a net profit of INR 302 crore, as compared to INR 381 crore loss in the corresponding period last fiscal. The company has been witnessing positive growth in the European markets, especially in the ultra-high-performance passenger vehicles category.

Looking for new Apollo Tyres? Find dealers near you

Source: PTI

You Might Also Be Interested In

Top Rated Apollo Tyres

Latest Tyres

  • Car
  • Bike
  • Truck
  • ZVTV A4
    ZVTV A4
    165/80 R14 85T
    Rs3,470
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • icon5
    CZAR A/T
    CZAR A/T
    255/65 R18 111H
    Rs11,390
    • iconCar Tyre
    • iconTube
    • iconDry Grip
    • iconWet Grip
    View January Offers
  • Apterra Cross
    Apterra Cross
    205/65 R16
    Rs6,100
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • AT 20 Grand Trek
    AT 20 Grand Trek
    265/65 R17 110S
    Rs14,699
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • FR500
    FR500
    185/65 R14 86H
    Rs3,491
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • UM 551
    UM 551
    165/80 R14 85T
    Rs3,505
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Smart UX Royal
    Smart UX Royal
    215/60 R17
    Rs8,055
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • CINTURATO P1
    CINTURATO P1
    245/40 R17 91W
    Rs14,577
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Centauro NS
    Centauro NS
    190/55 R17
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Smart Blaze RYDR BR43
    Smart Blaze RYDR BR43
    140/70-17
    Rs4,200
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Conta 725
    Conta 725
    90/90 R12
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • icon5
    Gripp XL
    Gripp XL
    90/90 R19
    Rs1,750
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • icon5
    M6303
    M6303
    90/90 R12 54J
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • BT SPORTMAXX
    BT SPORTMAXX
    140/70 R17
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Feelfree
    Feelfree
    120/70 R15 56H M/C
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Conti Aqua Gripp
    Conti Aqua Gripp
    3.00-18 6PR
    Rs1,560
    • iconBike Tyre
    • iconTube
    • iconDry Grip
    • iconWet Grip
    View January Offers

Best Tyres

  • Car
  • Bike
  • Truck
  • SecuraDrive
    SecuraDrive
    205/60 R16
    Rs6,475
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • ZLX
    ZLX
    155/80 R13 79T
    Rs2,850
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View January Offers
  • Milaze
    Milaze
    185 R14
    Rs3,552
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Vectra
    Vectra
    155/70 R14 77T
    Rs2,649
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View January Offers
  • Fuel Smarrt
    Fuel Smarrt
    165/80 R14 85T
    Rs3,505
    • iconCar Tyre
    • iconTubeless
    • iconFuel efficient
    • iconDry Grip
    View January Offers
  • Taximax
    Taximax
    185/70 R14 88T
    Rs3,940
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • icon5
    ZVTV
    ZVTV
    185/65 R15 88S
    Rs4,750
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View January Offers
  • Alnac
    Alnac
    195/70 R14 91H
    Price Coming Soon
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View January Offers
  • WINMILE D
    WINMILE D
    11.00 R20
    Rs15,000
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • FM Super
    FM Super
    10.00-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • MUSCLEROK
    MUSCLEROK
    10.00-20
    Price Coming Soon
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • HCL Super
    HCL Super
    12.00-20/18
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Lug Plus
    Lug Plus
    10.00-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Mile XL Rib Pro
    Mile XL Rib Pro
    8.25-20/16P
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • Lug XL Pro
    Lug XL Pro
    8.25-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
  • THE LUG-PLUS
    THE LUG-PLUS
    10.00-20
    Price Coming Soon
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View January Offers
×
Which is your city ?