Earnings Review
High input cost, low sales pull Apollo Tyres PAT dn Jan-Mar
This story was originally published at 21:47 IST on 14 May 2025
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--Apollo Tyres Jan-Mar consol operating margin 13.04% vs 16.43% year ago
--Apollo Tyres Jan-Mar Europe sales INR 18.91 bln vs INR 18.64 bln year ago
--Apollo Tyres Jan-Mar Asia-Pacific, West Asia, Africa sales INR 46.49 bln
--Apollo Tyres Jan-Mar one-time cost of INR 1.19 bln
--Apollo Tyres Jan-Mar raw material cost INR 32.27 bln vs INR 26.62 bln
--Apollo Tyres FY25 consol revenue INR 261.23 bln vs INR 253.78 bln year ago
--Apollo Tyres FY25 consol PAT INR 11.21 bln vs INR 17.22 bln year ago
--Apollo Tyres to pay INR 5 per share dividend
--Apollo Tyres Jan-Mar consol revenue INR 64.24 bln vs INR 62.58 bln yr ago
--Apollo Tyres Jan-Mar consol PAT INR 1.85 bln vs INR 3.54 bln year ago
--Analysts saw Apollo Tyres Jan-Mar consol net profit INR 2.97 bln
By Krity Ambey
NEW DELHI – High input costs and underperformance in sales dragged the consolidated net profit of Apollo Tyres Ltd. to INR 1.85 billion in the quarter ended March, down over 45% sequentially as well as on year. With the Jan-Mar financial results, the company has witnessed a fall in profit for five consecutive quarters now.
Analysts had anticipated the tyre manufacturer's profit to fall in the reporting quarter, but the final profit figure is way lower than the expectation of around INR 2.97 billion. The company's profit for Jan-Mar was lower than even the lowest net profit estimate of INR 2.69 billion given by Anand Rathi Share and Stock Brokers Pvt. Ltd.
Apollo Tyres' expenditure on raw materials jumped 21.3% on year to INR 32.27 billion in the quarter ended Mar. 31. The company also incurred one-tme expense of INR 1.19 billion during the quarter. Apollo Tyres attributed the exceptional spending to a re-organisation exercise undertaken for employees, its Extended Producer Responsibility obligation for recycling of waste tyres, and closure of operations of a wholly owned subsidiary, Trusted Mobility Services Ltd., in 2024.
While analysts had anticipated high input costs to weigh upon the company's net profit, they had expected a tad higher growth in net sales than the final numbers. Apollo Tyres' consolidated revenue from operations grew only 2.6% to INR 64.24 billion in Jan-Mar. Sequentially, the net sales were down 7.3%.
The company's revenue from operations in Europe for March quarter was INR 18.91 billion, compared to INR 18.64 billion in the corresponding period a year ago. The tyre maker's sales in Asia-Pacific, West Asia, and Africa region for the quarter were INR 46.49 billion. The company's consolidated operating margin in Jan-Mar fell to 13.04% from 16.43% a year ago and 13.67% in the December quarter.
Apollo Tyres ended 2024-25 (Apr-Mar) with a consolidated net profit of INR 11.21 billion, down 35% on year. The company's net sales in the year rose only 3% to INR 261.23 billion.
The tyre company, whose shares closed 0.62% higher at INR 475.35 on the National Stock Exchange, also declared a dividend payout of INR 5 per share. Apollo Tyres released its earnings for Jan-Mar after Indian market hours. End
Edited by Deepshikha Bhardwaj
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