- Apollo Tyres reported a 13% year-on-year decline in consolidated profit after tax to Rs 258 crore
- Profit was impacted by a Rs 176 crore provision for restructuring its Netherlands-based plant
- Revenue rose to Rs 6,831 crore from Rs 6,437 crore in the same quarter last fiscal
Apollo Tyres on Thursday reported a 13% year-on-year decline in its consolidated profit after tax to Rs 258 crore in the September quarter, hit by Rs 176 crore provision for its Netherlands-based plant restructuring. The tyre maker reported a profit after tax (PAT) of Rs 297 crore in the July-September quarter of the last fiscal.
Revenue from operations rose to Rs 6,831 crore in the period under review against Rs 6,437 crore in the year-ago period, Apollo Tyres said in a statement.
'Favourable monsoon conditions, coupled with the Indian Government's recent initiatives to rejuvenate the rural economy, drove positive growth in both the OEM (original equipment manufacturer) and replacement segments during the past quarter,' Apollo Tyres Chairman Onkar Kanwar said. Additionally, the GST rationalisation implemented towards the end of the second quarter further stimulated demand across market segments in India, he added.
In Europe, the company's performance remained consistent with overall market growth, Kanwar said. The company said its board has approved raising up to Rs 1,000 crore via issue of Non-Convertible Debentures (NCDs) to be allotted in one or more tranches, through private placement.
Shares of the company settled 0.69% up at Rs 536.20 apiece on the BSE.
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