Goodyear's India unit posts near two-fold jump in Q4 profit on easing costs
29/05/2023 11:15
BENGALURU, May 29 (Reuters) - Tyre manufacturer Goodyear
India Ltd GDYR.NS on Monday reported a near two-fold rise in
fourth-quarter profit, helped by lower raw material costs and
growing demand for automobiles in the country.
The company's standalone profit rose to 336.1 million rupees
($4.1 million) for the quarter ended March 31, from 173.9
million rupees a year ago, it said in an exchange filing.
Revenue from operations rose 9.1% to 6.53 billion rupees,
while cost of materials consumed fell 5.4%, the Indian unit of
Goodyear Tire and Rubber Co GT.O said.
Indian automakers recorded higher sales in the March quarter
as consumers snapped up vehicles ahead of price increases due to
implementation of tighter fuel emission norms, which also
boosted demand for tyre makers.
Additionally, rubber prices have softened 3% from the
December quarter, and the easing prices were reflected in the
company's bottom line.
Goodyear's parent company, however, posted a loss of $101
million during the quarter, with revenue up by a marginal 0.7%.
"The growth is driven by better demand in OE segment.
Decrease in raw material costs, coupled with cost efficiencies,
drove higher profitability in the quarter," said Sandeep
Mahajan, chairman and managing director of Goodyear India.
The company's total expenses grew 5.4% to 6.10 billion
rupees.
Goodyear's results were largely in line with larger peers JK
Tyre JKIN.NS , Apollo Tyres Ltd APLO.NS and MRF Ltd MRF.NS
whose profits rose between two- and four-fold in the quarter.
Additionally, the company recommended a final dividend of
26.5 rupees per share for the financial year ended March 31.
Shares of the company rose 1.82% at 1,280 rupees after the
results.
($1 = 82.6149 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Varun H K)
((AshnaTeresa.Britto@thomsonreuters.com;))