Apollo Tyres rallied 4.17% to Rs 297.45 after the tyre maker's consolidated net profit rose 11.87% to Rs 194.45 crore on 17.31% increase in revenue from operations to Rs 5,956.05 crore in Q2 FY23 over Q2 FY22.
Consolidated profit before tax stood at Rs 238.44 in Q2 FY23, rising 8.75% from Rs 219.26 crore recorded in the corresponding quarter previous year.
Total expenses spiked 17.24% year on year to Rs 5,724.56 crore in Q2 FY23. Cost of materials consumed rose 9.87% to Rs 3,101.56 crore in Q2 FY23 from Rs 2,822.91 crore reported in Q2 FY22.
The company said that both Indian and European operations witnessed a healthy revenue growth in the second quarter, with Indian operations growing upwards of 16% while European operations growing more than 30% (in local currency terms).
Commenting on the company's performance, Onkar Kanwar, chairman of Apollo Tyres, said, We continued with our resolve towards profitable growth, despite the headwinds. Our cost control measures, and timely pricing actions, have helped maintain our profitability in a quarter where the raw material prices were at their peak. While the demand situation in India remained subdued, in Europe our growth was better than the market. With raw material prices tapering off, there is some respite going forward.
Apollo Tyres is an international tyre major with manufacturing units in India, the Netherlands and Hungary.
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