Apollo Tyres Ltd has reported its financial results for the second quarter of fiscal year 2025 (Q2 FY25), ending September 30, 2024.
The company experienced a 37% decline in consolidated net profit, amounting to ₹297 crore, compared to ₹474 crore in the same period the previous year.
Financial Highlights:
Revenue: The company’s revenue from operations increased marginally by 2.5% to ₹6,437 crore, up from ₹6,280 crore in Q2 FY24.
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by 24.3% to ₹877.8 crore, with the EBITDA margin narrowing to 13.6% from 18.5% in the same quarter last year.
Factors Influencing Performance
Raw Material Costs: An increase in raw material prices has exerted pressure on margins.
Domestic Demand: The company faced tepid demand in the Indian market, particularly in the Original Equipment Manufacturer (OEM) segment, which offset the growth observed in the replacement segment.
Management Commentary
Onkar Kanwar, Chairman of Apollo Tyres, stated, “We witnessed a weak demand scenario in the OEM segment in our largest market—India, which negated the strong growth in the replacement segment.”
Strategic Initiatives
In response to the challenging market conditions, Apollo Tyres’ board has approved the raising of funds up to ₹1,000 crore through the issuance of non-convertible debentures, to be allotted in one or more tranches via private placement.
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