Apollo Tyres surged 3.01% to Rs 219.15 after the tyre maker reported a consolidated net profit of Rs 173.82 crore in Q2 FY22 as against a net loss of Rs 246.28 crore registered in Q2 FY21.
Consolidated net sales grew 18.2% to Rs 5,077.32 crore in Q2 FY22 from Rs 4,294 crore posted in Q2 FY21. Profit before tax stood at Rs 219.26 crore in Q2 FY22 as against a pre tax loss of Rs 315 crore recorded in the same quarter last year.The company said it saw robust growth across both India and European operations driven by strong volume recovery, sharp execution and price increases taken. The company expects demand to remain healthy, although higher inflationary pressures could continue to weigh on near term margins.
Consolidated EBITDA declined 10% year on year to Rs 638 crore in Q2 FY22. EBITDA margin deteriorated to 12.6% in Q2 FY22 from 16.5% in Q2 FY21. Apollo Tyres said that operating performance was impacted by steep increase in raw material costs and constrained OEM demand (especially for PCR) due to chip shortage. The tyre maker said it undertook price increase of 3% to 7% in replacement segment.
The company's net debt marginally increased to Rs 5000 crore as of September 2021 from Rs 4800 crore posted in June 2021. The firm said net debt increase was driven by inventory valuation.
Apollo Tyres is an international tyre major with manufacturing units in India, the Netherlands and Hungary.
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