Apollo Tyres Profit Drops 32% in Q3 | High Raw Material Costs

New Delhi, Feb 6 (PTI) Apollo Tyres Ltd on Thursday reported a 32 per cent decline in consolidated net profit to Rs 337 crore in the December quarter with high raw material cost impacting margins.

The company had posted a consolidated net profit of Rs 497 crore in the same period of the last fiscal year, Apollo Tyres said in a regulatory filing.

Consolidated revenue from operations in the third quarter stood at Rs 6,927.95 crore as against Rs 6,595.37 crore in the year-ago period.

Total expenses in the quarter were higher at Rs 6,467.4 crore as compared to Rs 5,877.93 crore in the year-ago period. Cost of materials consumed was at Rs 3,222.77 crore as against Rs 2,884.63 crore, the company said.

Commenting on the performance, Apollo Tyres Chairman Onkar Kanwar said, "Under tough market conditions we have been able to perform well in the key passenger vehicle and commercial vehicle replacement segments in India. This performance was somewhat negated by the sluggish OE segment."

Europe, too, has performed in line with the market, he added.

"While the third quarter witnessed an increase in raw material prices, impacting our margins, we see a flattish trend in the current quarter," Kanwar said.