Shares of Apollo Tyres were falling on Thursday as investors were unimpressed by a massive uptick in the firm’s bottom line in the third quarter given largely flat revenue numbers.

What Happened: Apollo Tyres announced a surge in its consolidated net profit for the third quarter of 2023-24, soaring 78% to ₹497 crore, thanks to a favourable product mix across various regions. This significant growth marks a substantial increase from the ₹279 crore net profit reported in the same quarter last year.

However, during the quarter, revenue from operations witnessed a modest 3% rise to ₹6,595 crore, compared with ₹6,423 crore in the corresponding period last year.

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Management Speak: Chairman Onkar Kanwar expressed his satisfaction with the performance, particularly highlighting the outstanding performance of the company’s European operations.

He emphasised the resilience of the firm’s European segment, which has consistently outperformed the market, reflecting positive signs of recovery in the broader European market.

Kanwar further emphasised Apollo Tyres’ aim to achieve higher returns on capital employed (ROCE) and sustainable growth, driven by an enhanced product portfolio and market penetration across diverse regions.

He also underscored the stability in raw material prices as a contributing factor to the company’s continued success.

Price Action: Apollo Tyres’ share price was down 0.52% at ₹549.35 near the start of trade on Thursday.

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