As a result of the company’s announcement that its consolidated net profit for the April-June quarter increased by 49 percent, shares of Apollo Tyres increased by approximately 7 percent earlier this Tuesday. This increase was driven by the company’s strong sales. The tyre manufacturer reported a net profit of INR 190.68 crore for the quarter that ran from April to June, which is an increase from the INR 127.78 crore reported for the same period in the previous year.
At 10:21 on Tuesday morning, shares of Apollo Tyres were trading on the BSE at INR 251.35, representing a rise of 6.72 percent over the previous closing price.
The revenue from operations of Apollo Tyres for the quarter that ran from April to June was INR 5,942 crore, which is a leap of 29.6 percent over the INR 4,584.47 crore that was recorded during the same time period in the previous year.
The total amount spent increased by 28.08 percent year over year to reach INR 5,714.18 crore at the end of the June 2022 quarter. For the April-June quarter, the cost of materials used was reported to be INR 3405.47 crore, representing an increase of 44.5 percent year-on-year, while staff expenses decreased by 1.2 percent and were reported to be INR 645.27 crore.
According to a filing with regulatory authorities, the tyre maker reported that sales from operations in India and European operations climbed by 38 percent and 14 percent, respectively, as compared to the same time in the previous year.
A good demand across all market sectors, particularly for passenger car tyres, was a major contributor to the success that the Indian and European Operations had during the most recent quarter. As a result, both regions experienced robust top-line growth. We were able to weather the sustained rise in raw material prices in the first quarter thanks to better cost management, an expansion of our product offering, and prompt pricing adjustments in all of our markets, said Mr. Onkar Kanwar, Chairman, Apollo Tyres.
In addition, the board of directors of the firm has given its approval for the company to raise INR 1,000 crore through non-convertible debentures in one or more tranches (NCDs).