Apollo Tyres today reported 72 per cent decline in its consolidated net profit at Rs 88.3 crore for the quarter ended June 30, due to pre-GST destocking by trade partners and higher expenses.
The tyre maker had posted a net profit of Rs 315.54 crore during the same period of the previous fiscal, Apollo Tyres said in a BSE filing.
The company said the first quarter revenue in India was subdued because of the "pre-GST destocking by the company's business partners, and confusion over switchover from BS III to BS IV emission norms in commercial vehicles."
Total expenses during the quarter under review stood at Rs 3,423.9 crore as against Rs 3,158.6 crore in the year ago period, up 8.39 per cent.
Apollo Tyres chairperson Onkar S Kanwar said, "The results reflect the impact of the rising raw material prices on our operations. Raw material prices as a basket have jumped more than 30 per cent in the first quarter, as compared to the same period last year, and has negatively impacted our margins."
Meanwhile, the company said its board has approved raising Rs 500 crore through issue of non-convertible debentures on private placement basis.
The company's stock closed 3.16 per cent down at Rs 262.35 apiece on BSE. PTI PRJApollo Tyres Q1 net profit dives 72 pc to Rs 88.