May 28, 2024


India’s Apollo Tyres Ltd reported a lower profit for the fourth quarter on Tuesday, hurt by increased tax expenses.

 


WHY IT’S IMPORTANT

 


Apollo Tyres, which manufactures tyres for Maruti Suzuki, Mahindra and Mahindra and TVS Motor Company Ltd among others, is one of the major players in the sector, which has a turnover of $11 billion.

 


CONTEXT

 


The Gurgaon,Haryana-based company recorded a deferred tax liability along with its tax expenses for the quarter, following up on a 2023 amendment to income tax laws.

 


Analysts have noted a significant surge in natural rubber prices during the quarter, a crucial raw material for the tyre industry.


Peers MRF and CEAT also saw a decline in their fourth-quarter profits.


BY THE NUMBERS

 


The tyremaker’s consolidated profit fell 13.7% to Rs 354 crore ($42.39 million) from a year earlier.

 


Analysts, on average, expected a profit of Rs 450 crore, per LSEG data.

 


The company’s total tax expenses for the quarter increased almost 80% to Rs 209 crore.

 


Revenue from operations rose 0.17% to Rs 6,258 crore.

 


The company’s total expenses fell 0.5%.

First Published: May 14 2024 | 10:24 PM IST