2 hours ago
HomeMarket NewsApollo Tyres Q2 Results | Net profit falls 13%, board approves ₹1,000 crore NCD issue
The tyremaker reported a rise in revenues on the back of steady demand in key markets like Europe, Middle East and Asia, and lower input costs. The board has also approved a fundraise of ₹1,000 crore via non-convertible debentures.
Tyre-maker Apollo Tyres saw net profit slipping 13% to ₹258 crore in the second quarter from ₹297 crore a year ago, the company reported on Thursday, November 13.
This fall came despite Revenues rising 6% to ₹6,831 crore and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) growing 16.2% year-on-year, reaching ₹1,020 crore from ₹878 crore in the base quarter. Performance was helped by steady demand in Europe and Asia, and lower raw material prices.
Apollo Tyres’ margins also expanded by 130 basis points in Q2 to 14.9% from 13.6% in the same period last year.
A big reason for the fall in Net profit despite a better operational perfoamnce is due to an exceptional expense of ₹180 crore in the quarter, substantialy higher than the ₹5.17 crore number a year ago.
The Apollo Tyres board has also approved a plan to raise ₹1,000 crores through the isue of Non-Convertible Debentures (NCDs). These NCDs will be allotted through a private placement exercise.
The results came in after market hours on Thursday. However, during Thursday's trading session, shares of Apollo Tyres ended 0.64% higher at ₹535.75/share.
(Edited by : Arvind Sukumar)
