CHEN­NAI:

The Pak Banker - - COMPANIES/BOSS -

Apollo Tyres Ltd on Tues­day re­ported a 51% rise in net profit for the quar­ter ended 31 De­cem­ber, fall­ing short of es­ti­mates, as a slow­down in the truck and bus ra­dial seg­ment along with cheaper Chi­nese im­ports af­fected the com­pany's sales. Net profit of In­dia's se­cond-largest tyre maker rose to Rs.278.5 crore from Rs.184.24 crore in the year-ago pe­riod. A Bloomberg poll of an­a­lysts had fore­cast a net profit of Rs.270.40 crore. Net sales were down 3.6% to Rs.2,930 crore, fall­ing well below the Bloomberg es­ti­mates of Rs.3,050.70 crore. The com­pany posted sales of Rs.3,040 crore a year ago. "De­spite our vol­umes go­ing up, es­pe­cially in In­dia, we have re­ported flat rev­enues, as we have passed on the ben­e­fit of cool­ing raw ma­te­rial prices to our cus­tomers. This, in ad­di­tion to the in­creas­ing im­port of cheap tyres into the coun­try, has im­pacted our rev­enues," said Onkar S Kanwar, chair­man, Apollo Tyres. Op­er­at­ing prof­itabil­ity or Ebitda (earn­ings be­fore in­ter­est, taxes, de­pre­ci­a­tion and amor­ti­za­tion) rose 17.2% to Rs.505.5 crore. On Tues­day, Apollo Tyres shares closed at Rs.135.05 apiece, down 1.60%, as the bench­mark in­dex Sen­sex lost 1.10% to close the day at 24,020.98 points.

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