Apollo Tyres rallies 4% after Q2 profit surges 164% on lower input costs

Apollo Tyres has recorded consolidated profit of Rs 474.3 crore for the quarter ended September FY24.

Shares of Apollo Tyres jumped nearly 4 percent in early trade on November 8 as the tyre company reported over 164 percent surge in profit for the second quarter. At 9:15am, the Apollo Tyres stock was trading at Rs 397.24 on the NSE.

Apollo Tyres posted a consolidated profit of Rs 474.3 crore in the quarter ended September of FY24, marking a remarkable 164.4 percent increase from the last year. This impressive financial performance can be attributed to a decrease in the cost of the materials required for tyre production.

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The company's revenue from its operations recorded a healthy growth of 5.4 percent, reaching Rs 6,280 crore over the year-ago period.

Also Read: Apollo Tyres Q2 net profit rises over 2.5-fold to Rs 474 crore

"Our operations have experienced positive revenue growth, and, indicating further demand improvement in the future. We are witnessing encouraging signs, particularly from India," Apollo Tyres Chairman Onkar Kanwar said. "We remain steadfast in our commitment to achieving profitable growth, aligned with our long-term vision."

Check brokerage views

Brokerage firm Motilal Oswal is bullish on the Apollo Tyres stock and the firm has recommended a ‘buy’ rating on the stock in a report released after the results. The report further stated that the revenue of the company was in line as per expectations. Further the gross margin expansion and lower operating expenses supported the EBITDA beat.

Stock performance

The Apollo Tyre stock has given a return of 3.05 percent over the last six months. The benchmark Nifty50 index has given a return of 6.28 percent over the same duration.

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