Raw materials costs, sluggish OE demand weigh on Apollo Tyres earnings

Gurugram, India – Apollo Tyres Ltd has seen a 21% decline in third quarter operating profit, due mainly to an increase in the cost of raw materials.

The Indian tire maker reported operating profit of INR9.47 billion (€106 million) for the three months to end of December 2024, down 21% from INR12.0 billion reported the year before.

Sales for the period was up 5% year-over-year at INR69 billion, with both Indian and European operations reporting “mid-single digit growths,” Apollo announced 6 Feb.

For the nine months to end of December, the company posted a 20% year-on-year decline in operating profit to INR27.3 billion, with sales up 3% at INR197 billion.

Commenting on the company’s performance, chairman Onkar Kanwar said Apollo performed well in the Indian replacement passenger car and commercial tire markets “under tough market conditions”.

The performance, he said, “was somewhat negated by the sluggish OE segment [in India],” while Europe performed “in line with the market.”

“While the third quarter witnessed an increase in raw material prices, impacting our margins, we see a flattish trend in the current quarter,” Kanwar concluded.