Shares of Apollo Tyres were trading 6% higher on 8 November after the company announced its earnings for the July-September quarter.

The tyre manufacturing major reported a 164.4% year-on-year (YoY) increase in its consolidated net profit at Rs 474.3 crore for the quarter under review from Rs 179 crore reported in the year-ago quarter. Sequentially, the net profit saw a 19.5% quarter-on-quarter surge from Rs 397 crore reported in the previous quarter of the same fiscal year.

The surge in net profit can be attributed to a decrease in the cost of the materials that are required for the production of tyres.

The revenue from operations of the company saw a 5% YoY increase to Rs 6,280 crore from Rs 5,956 crore reported in the same quarter from the previous fiscal year.

Onkar Kanwar, Chairman of Apollo Tyres, said, “Our operations have experienced positive revenue growth, and, indicating further demand improvement in the future. We are witnessing encouraging signs, particularly from India.”

He added that the company still remains steadfast in its commitment towards achieving profitable growth that aligns with the company’s long-term vision.

During the quarter, the company’s total expense came in at Rs 5,613 crore, which is marginally lower than the Rs 5,691 crore incurred during the same quarter of the previous financial year.

Over a period of six months, the shares of the company have gained over 3.05% against 6.28% returns given by the benchmark Nifty50 index.

At 1:35 pm, the shares of Apollo Tyres were trading 6.46% higher at Rs 408.90 on NSE.