Why This Midcap Stock Is Down Today Despite 78% Uptick In Q3 Profit
In a surprising turn of events, Apollo Tyres’ stock took a dip on Thursday despite the company reporting a remarkable 78% increase in its third-quarter net profit. This financial improvement, however, was overshadowed by the company’s relatively unchanged revenue figures.
Apollo Tyres highlighted a significant profit jump to ₹497 crore in the third quarter of 2023-24, a steep rise from ₹279 crore in the previous year, benefiting mainly from an advantageous product mix in various markets. Nonetheless, the revenue from operations modestly increased by just 3% to ₹6,595 crore from last year’s ₹6,423 crore.
Chairman Onkar Kanwar applauded the firm’s performance, particularly in Europe, crediting it for driving the company’s success. He stressed Apollo Tyres’ commitment to achieving better returns on capital employed and sustainable growth through a diversified product range and market expansion. Kanwar also pointed to steady raw material prices as a key factor supporting the positive outcomes.
Despite these achievements, Apollo Tyres saw its share price decrease by 0.52% to ₹549.35 in early trade on Thursday, reflecting investor concern over the growth sustainability against flat revenue growth.
