 "Apollo Tyres Q3 results: Profit surges 70% to Rs 736 crore, revenue up 2.7%")
India's Apollo Tyres posted a 70% jump in third-quarter profit on Wednesday, helped by higher sales of larger and costlier tyres.
Consolidated pre-tax profit before exceptional items was Rs 736 crore (around $89 mn) in the quarter ended Dec. 31, compared with Rs 424 crore a year earlier.
The overall profit included a exceptional charge of Rs 15.1 crore for an employee re-organization exercise.
While the results largely mirror those of CEAT and JK Tyre, it was unclear if Apollo had also hiked prices, like its peers, to offset higher rubber costs and the slowdown in passenger and commercial vehicle sales.
Analysts have said that Apollo likely benefitted from strong demand for sport utility vehicles (SUVs), where it is the market leader, and from increased sales of tyres for heavier trucks and buses.
Meanwhile, revenue grew merely 2.7%, marking its weakest increase since June 2020.
Revenue in the Asia Pacific, Middle East and Africa segment, Apollo's largest, increased 2.9%, while it rose 6.1% in Europe, where it sells the 'Vredestein' brand premium tyres.
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