India's Apollo Tyres Q4 profit falls on higher tax expenses

MRF

14/05/2024 14:08

BENGALURU, May 14 (Reuters) - India's Apollo Tyres Ltd
 APLO.NS  reported a lower profit for the fourth quarter on
Tuesday, hurt by increased tax expenses.
    
    WHY IT'S IMPORTANT
        Apollo Tyres, which manufactures tyres for Maruti Suzuki
 MRTI.NS , Mahindra and Mahindra  MAHM.NS  and TVS Motor Company
Ltd  TVSM.NS  among others, is one of the major players in the
sector, which has a turnover of $11 billion.
  
    
    CONTEXT 
        The Gurgaon,Haryana-based company recorded a deferred
tax liability along with its tax expenses for the quarter,
following up on a 2023 amendment to income tax laws.
  
    Analysts have noted a significant surge in natural rubber
prices during the quarter, a crucial raw material for the tyre
industry.
    Peers MRF  MRF.NS  and CEAT  CEAT.NS  also saw a decline in
their fourth-quarter profits.
        
    BY THE NUMBERS
    The tyremaker's consolidated profit fell 13.7% to 3.54
billion rupees ($42.39 million) from a year earlier.
    Analysts, on average, expected a profit of 4.5 billion
rupees, per LSEG data.
    The company's total tax expenses for the quarter increased
almost 80% to 2.09 billion rupees. 
    Revenue from operations rose 0.17% to 62.58 billion rupees.
    The company's total expenses fell 0.5%.
    
    GRAPHIC
    
    
    
    (Figures in percentage)
    


($1 = 83.5015 Indian rupees)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Apollo Tyres Jan-March stock    https://tmsnrt.rs/4bzLzuy
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Tasim
Zahid)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))