Apollo Tyres Q3 net profit up 6% at Rs 296 crore

Gurgaon-based Apollo Tyres today reported a six percent increase in net profit at Rs 296 crore for the third quarter ended December 31, 2016. The company had posted net profit of Rs 279 crore in the year-ago period.

Net sales went up by 17% to Rs 3435 crore in the quarter under review. Earnings before interest, tax, depreciation and amortization (Ebitda) stood at Rs 537 crore during the quarter compared to Rs 519 crore in the corresponding period of the last financial year.

The company witnessed good volume growth in both Indian, as well as, European Operations in the 3rd quarter, led by the passenger vehicle segment.

Onkar Kanwar, chairman, Apollo Tyres, said, “We have been able to deliver positive numbers in spite of various external factors in the last few months.

While, uncertainty around GST in India, adversely impacted the commercial vehicle segment, the passenger vehicle segment witnessed a good growth.

European Operations grew both in revenue and volume terms, and that too, faster than the industry. Having said that, the increasing rubber and other raw material prices in the last few months would be a challenge for us, and the industry, going forward.”

Shares of Apollo Tyres were trading at Rs 187.25 a piece, up by 3.62% in afternoon trade on the BSE.