Shares of Apollo Tyres Ltd witnessed a remarkable upswing, soaring by 6% during Wednesday’s trading session. This surge followed the company’s impressive financial results for the quarter ending on September 30, 2023. Apollo Tyres’ robust performance was underscored by a substantial increase in net profit, attributed to a significant decline in raw material costs.
In the Q2 FY24 report, Apollo Tyres reported a remarkable 2.5-fold surge in its consolidated net profit, reaching Rs 474.26 crore on a year-on-year (YoY) basis. This substantial growth was propelled by higher revenue figures and reduced expenditure on raw materials, contrasting sharply with the previous fiscal year’s performance when the company had recorded a consolidated net profit of Rs 179.39 crore.
During the September 2023 quarter, the company’s consolidated revenue from operations experienced a slight uptick, reaching Rs 6,279.67 crore compared to the previous year’s figure of Rs 5,956.05 crore. Notably, Apollo Tyres managed to curtail its cost of materials consumed, which stood at Rs 2,634.92 crore in Q2 FY24, significantly lower than the Rs 3,101.56 crore reported in the corresponding quarter of the previous financial year.
The positive financial report had an immediate impact on the market, with Apollo Tyres’ stock price surging by as much as 6% to reach Rs 407.75 on Wednesday. This surge in share value translated to a total market capitalization of nearly Rs 26,000 crore. To put this into perspective, the stock had settled at Rs 385.30 apiece during the previous trading session on Tuesday.
One of the standout metrics from the Q2 FY24 report was Apollo Tyres’ EBITDA, which witnessed an impressive 63% YoY growth, reaching Rs 1,159.8 crore, up from Rs 711.9 crore reported in the corresponding period last year. Additionally, the company’s EBITDA margins for the July-September 2023 period stood at 18.5%, a significant improvement from the 12% recorded during the same period in the previous fiscal year.
At the time of reporting (12:50 pm) the shares were trading 6.29% higher at ₹408.25
