Apollo Tyres Ltd. reported a 32% drop in consolidated net profit for the December quarter, amounting to INR 337 crore. This decline is attributed to rising raw material costs. The company's profit during the same period last year was INR 497 crore. Despite the profit drop, consolidated revenue increased slightly to INR 6,927.95 crore compared to INR 6,595.37 crore in the previous year's third quarter.

The company's total expenses rose to INR 6,467.4 crore in the third quarter, up from INR 5,877.93 crore in the same quarter of the previous fiscal year. A significant contributor to this increase was the cost of materials, which jumped from INR 2,884.63 crore to INR 3,222.77 crore.

Apollo Tyres Chairman Onkar Kanwar said, “Under tough market conditions we have been able to perform well in the key passenger vehicle and commercial vehicle replacement segments in India. This performance was somewhat negated by the sluggish OE segment.”

Kanwar also highlighted the company’s performance in Europe. He stated that their European operations performed in line with the broader market.

What led to the decline?

The decline in profit comes despite an increase in revenue. The rising cost of raw materials played a significant role in reducing profitability. While the Indian passenger and commercial vehicle replacement segments performed well, the original equipment (OE) segment lagged. European operations mirrored the overall market performance. The company expects raw material prices to stabilise in the current quarter.>