India’s biggest tyre manufacturer, Apollo Tyres Ltd. Reported a boost of profit in the second quarter and prices for natural rubber drops and domestic market grows.
The 15th biggest tyre manufacturer in the world reported to have profited in the second quarter a net of Rs 75 crore with net sales at Rs2,291 crore., a profit three times higher than the first quarter net profit which was only Rs22 crore.
After the profits were announced, he shares of the tyre manufacturer have dropped 2.37% to Rs86.45.
According to analyst Nishant Vass, the increase in the profit is the result of the natural rubber prices dropping earlier this year. 60% of the overall cost of the production goes to the natural rubber.
According to another analyst, the earnings of Apollo were already expected. (RJA)