Shares of tyre maker Apollo Tyres fell as much as 7.37 per cent to hit an intraday low of Rs 204.70 despite it reported a jump of 268 per cent in net profit in quarter ended March 2021. Apollo Tyres consolidated net profit came in at Rs 289 crore compared with Rs 78 crore in the corresponding period last year. Its sales jumped 39 per cent to Rs 4,927 crore compared with Rs 3,551 crore in the same quarter last year.
Apollo Tyres operating profit or earnings before interest, tax, depreciation and amortization (EBITDA) advanced 70 per cent to Rs 815 crore and its operating profit margin rose 290 basis points to 16.2 per cent during the quarter.
Its India business witnessed best ever quarter in terms of sales, surpassing last high achieved in the third quarter of financial year 2021. “Performance was driven by strong volume growth across channels – OEM, Replacement and Exports during the quarter. Almost all product segments posted double digit volume growth,” Apollo Tyres said in an investor presentation.
Apollo Tyres European business saw decent recovery during the quarter and gained market share in passenger car & light truck (PCLT) tyres and truck and bus radial (TBR) tyres, the company said.
Apollo Tyres expanded its distribution footprint to over 550 dealers in FY21 and touch points in rural India increased by more than four times.
As of 12:03 pm, Apollo Tyres shares traded 7.2 per cent lower at Rs 205, underperforming the Sensex which was down 0.3 per cent.