Apollo Tyres Q1 Results: Apollo Tyres announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Wednesday, August 7, reporting a drop of 24 per cent in net profit at ₹302 crore, compared to ₹397 crore in the corresponding period last year. The Chennai-based tyre maker's revenue from operations in the first quarter of current fiscal rose 1.4 per cent to ₹6,335 crore compared to ₹6,244 crore in the year-ago period.
The company's net profit declined due to lower sales and increased raw material costs. Apollo Tyres' operating performance or EBITDA (earnings before interest, taxes, depreciation, and amortisation) came in ₹909.4 crore, registering a drop of 13.5 per cent, compared to ₹1,051.4 crore in the year-ago period. Margin fell to 14.4 per cent, compared to 16.8 per cent in the year-ago period.
Earlier this year, White Iris Investment, a subsidiary of private equity giant Warburg Pincus, on Wednesday offloaded a 3.5 per cent stake in Apollo Tyres in a bulk deal on the BSE. The transaction, which included 22.4 million shares priced at ₹477.35 apiece, helped the firm rake in ₹1,073 crore.
The divestment by White Iris Investment garnered buying interest from ICICI Prudential and Morgan Stanley, which acquired stakes of 0.66 per cent and 0.63 per cent in Apollo Tyres, respectively, at the same price band.
"Coming to our quarterly performance, the replacement and exports from India have witnessed a good growth, and we expect the same to continue in the coming quarters as well," said Onkar Kanwar, Chairman, Apollo Tyres.
The India business segment was hurt by weak domestic demand and higher rubber costs. ‘’Europe continues to perform well under current market conditions,'' he added. Ahead of the announcement of Q1FY25 results, shares of Apollo Tyres settled 1.04 per cent higher at ₹520.75 apiece on the BSE.
