Apollo mulls cost control measures, pricing actions as inflation grows

Chennai, India – Apollo Tyres intends to take further pricing actions and other cost control measures as it expects cost inflation to continue in the near term.

Announcing the company’s third quarter results 2 Feb, chairman Onkar Kanwar said in addition to those measures, Apollo will continue to expand its product range and footprint across key markets, to align with the “robust demand momentum.”

Over the quarter ended 31 Dec 2021, Apollo reported a 10% increase in sales to INR57 billion (€663.93 million). Operating profit fell nearly 28% to INR7.4 billion. Net profit for the period halved to INR2.2 billion.

Operating profit for the first nine months of the year fell 1.7% to INR19.5 billion, on 24% higher sales at INR154 billion. 

Apollo did not provide reasons for the decline in operating profit, but said both its Indian and European operations reported a growth of 11% in sales each during the third quarter. 

“Despite the headwinds, we have seen a healthy growth in the third quarter, contributed by a strong performance in the European operations and exports out of India,” Kanwar said.