Apollo Tyres' Q1 Net Profit Soars Twofold to Rs 397 Crore

11 Aug 2023 , 10:32 AM

Apollo Tyres has reported a significant surge in its consolidated net profit for the first quarter of the fiscal year 2023-2024. The company’s net profit jumped two-fold to Rs 397 crore in Q1, compared to Rs 177 crore in the same period last year.

The boost in profitability was attributed to factors like lower rubber costs and robust sales of domestic automobiles in various markets. Apollo Tyres’ revenue from operations during the quarter increased by 5% to reach Rs 6,245 crore, up from Rs 5,942 crore in the corresponding quarter of the previous year.

Notably, the cost of raw materials witnessed a substantial decrease of 15.5% during the same quarter, positively impacting the company’s financial performance. The company’s EBITDA for the quarter showed a remarkable growth of 55.19%, totaling Rs 1,086.99 crore in June 2023, as compared to Rs 700.42 crore in June 2022.

Apollo Tyres revealed a subsidiary’s reassessment of an impairment loss recognized in the preceding quarter, resulting in the writing back of a portion of the loss, totaling Rs 225.77 million.

Apollo Tyres’ shares have displayed strong performance, delivering returns of 32.83% over the past 6 months and an impressive 91.84% over the last 12 months.

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