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Apollo Tyres is expected to more than double its consolidated net profit to ₹308 crore for the fourth quarter ended March 31, from ₹113 crore in the year-ago period.
According to analysts tracking the sector, net sales are also seen growing at 10 per cent year-on-year (YoY) to ₹6,139 crore.
During Q3, the company recorded a consolidated net profit of ₹292 crore, as against ₹224 crore in the same period last fiscal.
Net sales also increased 13 per cent YoY to close at ₹6,423 crore, as against ₹5,707 crore in Q3 FY22
Operating profit reported was ₹913 crore, as against ₹743 crore.
According to market research firm ICRA, domestic tyre demand growth is expected at 6-8 per cent for FY2024, supported by stable growth in the replacement segment and sustained demand momentum in the OEM segment.
ICRA expects the demand momentum in the OEM segment to continue in FY2024 with an estimated growth of 8-10 per cent. Replacement demand, which forms around two-thirds of tyre demand, is likely to witness mid-single digit growth in FY2024, it said recently in a report.
“While the El Nino occurrence and its potential impact on rural demand is monitorable, factors like improving economic activities, increasing freight movement, higher spend on infrastructure, absence of material price hikes, etc., shall support the growth in the replacement segment in FY2024,” it said.
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