New Delhi, Feb 5 (PTI) Apollo Tyres Tuesday reported a 19.18 per cent decline in net profit to Rs 198 crore in the third quarter ended December 2018, owing to a rise in commodity prices.
The company had posted a net profit of Rs 245 crore in the corresponding period last fiscal, Apollo Tyres said in a statement.
Sales were up 16 per cent to Rs 4,655 crore, against Rs 4,016 crore in the corresponding quarter last fiscal, it added.
Total expenses during the third quarter were higher at Rs 4,440.59 crore, against Rs 3,746.11 crore with cost of materials consumed rising to Rs 2,252.4 crore as compared to Rs 1,818.23 crore in the year-ago quarter.
Apollo Tyres Chairman Onkar S Kanwar said: “While our volumes have increased across segments and geographies, the margins were impacted due to the lag effect of the increase in raw material prices, especially crude-based ones, in the previous quarters.” He further said: “Comparatively (ongoing), this quarter looks better, as the raw material prices have eased to some extent. In the current quarter, we are already witnessing an uptick in demand, and are hopeful of reporting a healthy growth.” Shares of Apollo Tyres were trading at Rs 200.70 apiece in the afternoon trade on the BSE, up 0.17 per cent from the previous close.
This is published unedited from the PTI feed.