Gurgaon, India – Apollo Tyres Ltd has posted a 6.6% year-on-year decline in consolidated revenues for its fiscal third quarter to Rs4347 crores (€551.29 million).
Earnings (EBITDA) for the three months to 31 Dec 2019 came in 1.6% lower at Rs551 crores, while net profit closed 12% down at Rs174 crores, the Indian tire maker reported 5 Feb.
For the first nine months of Apollo’s 2019-20 fiscal year, sales came in 4.2% lower at Rs12545 crores, while EBITDA fell 7.4% to Rs1490 crores.
Apollo linked the declines to challenges in its OE markets, offset partly by good growth in the replacement segment – mainly in India's passenger car tire sector.
“The last few quarters have really been challenging, in terms of demand, especially from the OE segment,” said Onkar S Kanwar, chairman Apollo Tyres Ltd.
“Despite our good show quarter-on-quarter in the replacement segment in India, overall performance has got impacted due to the sluggishness in demand from OEMs.”
On a better note, Kanwar said Apollo’s European operations had continued to benefit from a “superior performance” in the all-season and high-performance segment.
“With green shoots of recovery visible in India, we are hopeful of closing this fiscal [year] on a positive note,” the Apollo chairman concluded.