Earnings Review
Apollo Tyres PAT falls fourth time in row on high input cost
This story was originally published at 20:31 IST on 6 February 2025
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--Apollo Tyres Oct-Dec consol net profit INR 3.37 bln vs INR 4.97 bln yr ago
--Analysts saw Apollo Tyres Oct-Dec consol net profit INR 3.91 bln
--Apollo Tyres Oct-Dec consol revenue INR 69.28 bln vs INR 65.95 bln yr ago
--Apollo Tyres Apr-Dec consol PAT INR 9.37 bln vs INR 13.68 bln year ago
--Apollo Tyres Apr-Dec consol revenue INR 197.00 bln vs INR 191.20 bln yr ago
--Apollo Tyres Oct-Dec raw material cost INR 32.23 bln vs INR 28.85 bln
--Apollo Tyres Oct-Dec Asia-Pacific, West Asia, Africa sales INR 46.12 bln
--Apollo Tyres Oct-Dec Europe sales INR 23.72 bln vs INR 22.19 bln yr ago
--Apollo Tyres Oct-Dec consol operating margin 13.67% vs 18.32% year ago
By Akshita Kumar
MUMBAI – Apollo Tyres Ltd.'s consolidated net profit fell for the fourth consecutive quarter as the cost of materials rose more than the increase in revenue for the December quarter. Apart from this, an over five-fold increase in inventory-related expenses weighed on the company's earnings for the quarter.
Apollo Tyres reported a consolidated net profit of INR 3.37 billion, down 32% on year, and missed the Street's view of INR 3.91 billion. The tyre manufacturer posted a consolidated revenue of INR 69.28 billion, up 5% on year. The revenue growth for the December quarter is the highest in five quarters. Sequentially, the company's top line rose nearly 8%, and its profit grew 13%.
For the nine months ended December, the company's consolidated net profit was INR 9.37 billion, down 32% on year. The revenue during the period rose 3% on year to INR 197 billion.
The company had a one-time exceptional cost of INR 42.37 million in the December quarter. The cost of raw materials in Oct-Dec was INR 32.23 billion, up nearly 12% on year. The company's inventory-related expenses rose fivefold to INR 1.06 billion. Its total expenses for the quarter rose 10% on year to INR 64.67 billion.
The company's other expenses for the December quarter were INR 11.32 billion, up 3% on year. Employee benefit expenses rose 4% on year to INR 7.97 billion. The company's total income for the quarter was INR 69.36 billion, up almost 5% on year. Its other income fell 56% on year to nearly INR 81 million. The company's consolidated operating margin for the December quarter was 13.67%, down 465 basis points on year.
The company's revenue from Europe for the December quarter was INR 23.72 billion, up 7% on year. The tyre manufacturer's revenue from the Asia-Pacific, West Asia, and Africa region for the quarter rose 4% on year to INR 46.12 billion. The company's revenue from other regions, which includes the Americas and other corporate entities, was almost INR 12 billion, up 20% on year.
Apollo Tyres reported its December quarter financial results after market hours Thursday. Shares of the company closed 0.9% lower at INR 416.40 on the National Stock Exchange. End
Edited by Rajeev Pai
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