Apollo Tyres

There could be some margin relief on account of falling input costs

There could, however, be some margin relief on account of falling input costs

Apollo Tyres on Thursday said its consolidated net profit increased 30 per cent to Rs 292 crore for the December quarter, aided by robust sales in the domestic market. The company had reported a net profit of Rs 224 crore in the year-ago period. Revenue from operations rose 13 per cent to Rs 6,423 crore, as against Rs 5,707 crore in the October-December quarter of previous fiscal, the company said in a statement. "The domestic demand has helped us tide over the recessionary trends elsewhere. Having said that, our European Operations have still outperformed the market in the first 9 months of this fiscal," Apollo Tyres Chairman Onkar Kanwar said. Input costs eased to some extent in the past quarter, helping improve the company's margins, he noted. The demand momentum in the medium term looks positive, while there may be some headwinds in the near term, Kanwar said. On Thursday, shares of the company ended 0.5 per cent up at Rs 331.35 apiece on the BSE.

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The raw material (RM) and other input costs have started softening after a long spell of unprecedented increase, which is likely to improve margins in the medium term for tyre companies

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The company reported a double digit growth in revenue, and ebitda in the September quarter despite challenging environment

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Apollo Tyres on Monday said its consolidated net profit increased by 11 per cent to Rs 194 crore in the second quarter ended September, riding on the back of robust sales in domestic as well as international markets. The tyre major had reported a net profit of Rs 174 crore in the July-September period of the last fiscal. During the quarter under review, revenue from operations was up 17 per cent to close at Rs 5,956 crore as against Rs 5,077 crore in the year-ago period, Apollo Tyres said in a statement. "We continued with our resolve towards profitable growth, despite the headwinds. Our cost control measures, and timely pricing actions, have helped maintain our profitability in a quarter where the raw material prices were at their peak," Apollo Tyres Chairman Onkar Kanwar said in a statement. While the demand situation in India remained subdued, in Europe the company's growth was better than the market, he added. "With raw material prices tapering off, there is some respite going

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While volumes are rising, there are interesting structural changes taking place in the sector

The tyre industry is expected to perform well mainly due to easing out of pandemic, increasing demand from OEMs and replacement segment.

Near term volume outlook is muted, though, given seasonality and macro EU concerns

State-owned insurance behemoth Life Insurance Corporation (LIC) reported a net profit of Rs 682.88 crore in the April-June quarter (Q1) of FY23, driven by its non-par business.

The company said its board has approved raising Rs 1,000 crore through issuance of non-convertible debentures (NCDs) on private placement basis in one or more tranches.

Apollo Tyres expects electric vehicles' adoption to pick up pace over the next few years and is gearing up to cater to demand both in passenger vehicle and two-wheeler segments. The company, which on Monday introduced two tyre brands for electric passenger vehicles and two-wheelers, is bullish on opportunities across domestic and international markets. "The consensual view is that the electric two-wheeler segment will grow the fastest and in that too scooters will be the first followed by motorcycles. "Besides, the bus segment will also grow and four-wheeler will probably reach about 15-20 per cent (of the overall passenger vehicle sales) by 2030," Apollo Tyres President (Asia Pacific Middle East and Africa) Satish Sharma told PTI in an interaction. Electric two-wheeler sales could account for 30-35 per cent of overall sales by 2030, he suggested. "There is every reason to believe that there will be rapid expansion of electric vehicles and therefore tyres for such models," Sharma

Apollo Tyres on Thursday said its consolidated net profit has declined by 61 per cent to Rs 113 crore for the fourth quarter ended March. The company had reported a consolidated net profit of Rs 287 crore in the January-March quarter of 2020-21 fiscal. Revenue from operations rose by 11 per cent to Rs 5,578 crore, as against Rs 5,026 crore in the fourth quarter of FY21, Apollo Tyres said in a statement. For the year ended March 31, 2022, the tyre major said its net profit increased by 82 per cent to Rs 639 crore, as compared to Rs 350 crore in 2020-21. Revenue from operations rose by 20 per cent to Rs 20,948 crore, as against Rs 17,397 crores in FY21, the company said. "The unprecedented rise in input costs in FY22, have taken a toll on our margins, despite our internal cost control measures, and multiple rounds of price corrections undertaken in different product categories," Apollo Tyres Chairman Onkar Kanwar noted. The robust demand witnessed by the company's European operatio

The extent of the raw material risk is more for tyres as compared to others given the dependence on the crude oil derivatives.

CCI officials visited the offices of Apollo Tyres on Wednesday.