Goodyear's India unit posts Q3 profit rise as price hikes help

JK Tyre & Industries

14/02/2023 10:53

BENGALURU, Feb 14 (Reuters) - Tyre manufacturer Goodyear
India Ltd  GDYR.NS  on Tuesday reported a 25.5% rise in
third-quarter profit on the back of price hikes and growing
demand for automobiles in the country.
    Indian tyre makers have been helped as raw material prices
pulled back from Russia-Ukraine war-induced highs, while demand
rose as people bought more cars and other vehicles, or replaced 
parts like tyres. 
    Standalone profit for the Oct-Dec period rose to 244.1
million rupees ($2.95 million) from 194.5 million rupees a year
ago. 
    Revenue rose 13.9% to 6.89 billion rupees, while input costs
rose 1.5% to 2.51 billion rupees, the Indian unit of America's
Goodyear Tire & Rubber Co  GT.O  said in an exchange filing.
    "The growth is backed by pricing actions and better mix,
coupled with cost control measures which also contributed to
improvement in operating margins for the quarter," said Goodyear
India's Chairman & Managing Director Sandeep Mahajan.
    "Recent decreasing trends in commodity prices auger well for
the company," he added.
   New Delhi-based Goodyear's larger rivals Apollo Tyres
 APLO.NS , JK Tyre & Industries  JKIN.NS  and MRF  MRF.NS  have
all recorded double-digit rise in profits, while CEAT  CEAT.NS 
swung to a profit after reporting a loss in the previous year.
    Sales of passenger vehicles (PV) continue to rise as
economic activity picks up, the Society of Indian Automobile
Manufacturers said on Monday, with data showing a 17% rise in PV
sales for January.
    Goodyear, whose biggest customers are passenger vehicle
makers, also supplies tyres to major tractor manufacturers. 
($1 = 82.8300 Indian rupees)
 (Reporting by Nandan Mandayam in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))