Goodyear India Q3 revenue rises 18% yoy to Rs612cr; Stock climbs 3%

2 Feb 2022 , 09:17 AM

Goodyear India Ltd has reported results for the third quarter of fiscal year 2022.

Sandeep Mahajan, Chairman & Managing Director of Goodyear India Ltd said, “Our consumer replacement business continued to grow and gain market share, reflecting the strength of our brands.”

While demand remains robust, the business continues to deal with various cost pressures including the effects of the pandemic on the labor force, steep rise in fuel prices, and ongoing raw material inflation.

“In this unprecedented environment, we’re focused on offsetting costs with pricing and cost actions, expanding our distribution, and continuing to prioritize the health and safety of our associates,” added Mahajan.

Q3 Results
The Company’s third-quarter total Revenue was Rs612cr, up 18% from a year ago. Gross Margin was negatively impacted by higher cost of goods sold (+28%) due to increased raw material prices across all categories. Other Expenses were impacted by a steep rise in fuel prices.

Third quarter profit after tax (PAT) was Rs19cr, a decrease of 60% compared to Rs49cr in the prior year. PAT as percentage of sales was 3.2%, down from 9.4% in same period last year.

Cash Performance
A robust ending cash and bank balance of Rs528 at December 31, 2021 was attributable to sustained operating cash flows, aided by improvement in working capital and capex optimization.

At around 9:17 AM, Goodyear India was trading at Rs979 per piece higher by 3.17% on the BSE.