Apollo Tyres Q1 net profit falls 24%

8 Aug 2024 , 03:17 PM

On August 7, 2024, Apollo Tyres Ltd reported a 23.9% year-on-year (YoY) decline in net profit, amounting to ₹302 Crore for the first quarter ending June 30, 2024.

In the same quarter of the previous year, Apollo Tyres had posted a net profit of ₹397 Crore. The company’s revenue from operations increased by 1.4%, reaching ₹6,334.9 Crore compared to ₹6,244.6 Crore in the corresponding period of the previous fiscal year.

Operating income, measured by EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation), fell by 13.5% to ₹909.4 Crore from ₹1,051.4 Crore in the first quarter of the previous fiscal year. The EBITDA margin for the reporting quarter was 14.4%, down from 16.8% in the same period last year.

Apollo Tyres Chairman Onkar Kanwar highlighted that the replacement and export segments from India have shown significant growth, which is expected to continue in future quarters.

The financial results were announced after market hours, with Apollo Tyres’ shares closing at ₹520.75 on the BSE, reflecting a gain of ₹5.35 or 1.04%. At the time of writing on August 08, 2024 at 3:11 pm, shares of Apollo Tyres is trading at ₹512 which is a 1.71% dip than the previous close. Apollo Tyres shares has gained a total of 16% in the last one year and 12% since the beginning of the year.

Apollo Tyres Ltd, an Indian multinational tyre manufacturing company headquartered in Gurgaon, Haryana, was incorporated in 1972. Its initial plant was in Perambra, Thrissur, Kerala.

The company now operates five manufacturing units in India, along with facilities in the Netherlands and Hungary. Apollo Tyres generates 69% of its revenue from India, 26% from Europe, and 5% from other regions. In March 2016, the company entered the two-wheeler tyre segment through contract manufacturing.