BENGALURU (Reuters) – Tyre manufacturer Goodyear India Ltd on Monday reported a near two-fold rise in fourth-quarter profit, helped by lower raw material costs and growing demand for automobiles in the country.
The company’s standalone profit rose to 336.1 million rupees ($4.1 million) for the quarter ended March 31, from 173.9 million rupees a year ago, it said in an exchange filing.
Revenue from operations rose 9.1% to 6.53 billion rupees, while cost of materials consumed fell 5.4%, the Indian unit of Goodyear Tire and Rubber Co said.
Indian automakers recorded higher sales in the March quarter as consumers snapped up vehicles ahead of price increases due to implementation of tighter fuel emission norms, which also boosted demand for tyre makers.
Additionally, rubber prices have softened 3% from the December quarter, and the easing prices were reflected in the company’s bottom line.
Goodyear’s parent company, however, posted a loss of $101 million during the quarter, with revenue up by a marginal 0.7%.
“The growth is driven by better demand in OE segment. Decrease in raw material costs, coupled with cost efficiencies, drove higher profitability in the quarter,” said Sandeep Mahajan, chairman and managing director of Goodyear India.
The company’s total expenses grew 5.4% to 6.10 billion rupees.
Goodyear’s results were largely in line with larger peers JK Tyre, Apollo Tyres Ltd and MRF Ltd whose profits rose between two- and four-fold in the quarter.
Additionally, the company recommended a final dividend of 26.5 rupees per share for the financial year ended March 31.
Shares of the company rose 1.82% at 1,280 rupees after the results.
($1 = 82.6149 Indian rupees)
(Reporting by Ashna Teresa Britto; Editing by Varun H K)