Indian tyre maker Apollo Tyres Ltd. reported a nearly four-fold rise in fourth-quarter profit on Tuesday, beating estimates, aided by lower rubber costs and strong domestic auto sales.
The company's consolidated profit nearly quadrupled to Rs 427 crore ($52.21 million) in the quarter ended March 31 from Rs 113 crore a year earlier.
Analysts, on average, had estimated a profit of Rs 344 crore, according to Refinitiv IBES data.
Softening rubber costs and strong vehicle sales in India in the first three months of the year have benefited Indian tyre makers, including MRF Ltd and Ceat Ltd.
Analysts said that the price hikes also helped the companies bolster their margins, with Ceat reporting a five-fold jump in profit and MRF reporting its profit more than doubled for the quarter ended March 31.
Apollo's revenue from operations rose 12% to Rs 6,247 crore as the cost of materials consumed fell around 11.2% compared to the year-ago quarter.
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The company's total expenses, however, rose about 5.6% year-over-year.
Sales in the Asia Pacific, Middle East & Africa (APMEA), the company's biggest segment, increased nearly 10%.
Apollo also recommended a final dividend of Rs 4 per share.
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