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Apollo Tyres gains on good Q3 results

Apollo Tyres has rallied 10% to Rs 149 on the BSE in otherwise weak market after the company reported a better-than-expected 51% year on year (y-o-y) increase in consolidated net profit at Rs 279 crore for the third quarter ended December 31, 2015 (Q3FY16) on back of lower raw material and finance cost. The company had posted a consolidated net profit of Rs 184 crore in the same quarter last fiscal.

Net sales during the period under review declined 3.6% at Rs 2,929 crore as against Rs 3,037 crore in the corresponding period of the previous fiscal. The raw material cost reduced by 9% to Rs 1,346 crore, while finance cost more-than-halved at Rs 18 crore over the previous year quarter.

Analysts on an average had expected profit of Rs 255 crore on net sales of Rs 2,910 crore for the quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded 100 basis points to 17.18% in Q3FY16.

At 12:04 PM, the stock was up 9% at Rs 147 on the BSE as compared to 0.85% decline in S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 4.77 million shares changed hands on the BSE and NSE so far.