India's Apollo Tyres third-quarter profit surges 70%

JK Tyre & Industries

07/02/2024 13:49

BENGALURU, Feb 7 (Reuters) - India's Apollo Tyres
 APLO.NS  posted a 70% jump in third-quarter profit on
Wednesday, helped by higher sales of larger and costlier tyres.
    Consolidated pre-tax profit before exceptional items was
7.36 billion rupees (around $89 mln) in the quarter ended Dec.
31, compared with 4.24 billion rupees a year earlier.
    The overall profit included a exceptional charge of 151
million rupees for an employee re-organization exercise.
    While the results largely mirror those of CEAT  CEAT.NS  and
JK Tyre  JKIN.NS , it was unclear if Apollo had also hiked
prices, like its peers, to offset higher rubber costs and the
slowdown in passenger and commercial vehicle sales.
    Analysts have said that Apollo likely benefitted from strong
demand for sport utility vehicles (SUVs), where it is the market
leader, and from increased sales of tyres for heavier trucks and
buses.
    Meanwhile, revenue grew merely 2.7%, marking its weakest
increase since June 2020.
    Revenue in the Asia Pacific, Middle East and Africa segment,
Apollo's largest, increased 2.9%, while it rose 6.1% in Europe,
where it sells the 'Vredestein' brand premium tyres.


($1 = 82.9580 Indian rupees)


($1 = 82.9760 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))