Strengthening rupee against dollar, falling crude oil prices, easing trade tensions between the US and China etc boosted the market sentiments and led to a 4-15% surge in the stocks of the Indian tyre majors during the October 16, 2018 – December 14, 2018 period.
Apollo Tyres reported over 7% increase in the period of October 16, 2018 to December 14, 2018. After taking a dip in the third week of October, stocks of Apollo Tyres steadily surged in the next two weeks and then flatly moved till the end of third week of November. In the fourth week of November, the company stocks moved up, before seeing a fall.
Meanwhile, Apollo Tyres’ consolidated net profit for the second quarter increased by 4.19% to Rs 1.46 billion. The company had posted a net profit of Rs 1.40 billion in the same quarter ended September 30 in the last fiscal. Sales grew 23% to close at Rs. 41.92 billion from Rs. 34.18 billion, while operating profit increased 25% to close at Rs. 4.80 billion as against Rs 3.84 billion.
Stocks of MRF smoothly moved up from the fourth week of October to the end of November. At the start of December, the Chennai-based company’s stocks plunged for a week , before surging again at the end of the period. Finally, MRF’s stocks grew 5% in the period.
The company had a 12.29% fall in its profit at Rs 2.63 billion for the quarter ended September 30, 2018, as against a profit of about Rs 3 billion during the same period of the previous fiscal. Sales grew 9.41% to Rs. 40.05 billion for the quarter under review, up 9.41% as compared with Rs. 36.60 billion in the same period of the previous year.
Unlike its peers, BKT’s stocks surged at the start of the period. From November 5 to December 4, the company’s stocks moved flat, before having another fall. At the end, BKT’s stocks reported a 10.53 % fall in the period.
JK Tyre’s stocks picked up from the end of October and grew till mid-November. From mid-November to December 10, the company’s stocks fell on the bourses. However, at the end of the period of October 16, 2018 and December 14, 2018, JK Tyre’s stocks grew but did not manage to recover the loss and had a 3.54% fall.
TVS Srichakra’s stocks surged in the first week of November and then had a straight movement for the next two weeks. In the fourth week of November and the first week of December, the company’s stocks fell,
before again gaining a momentum. Finally, the company reported a growth of 4.12%.
After having a fall at the start of the period, Mumbai-based Ceat had a steady growth during the period and posted over 15% growth. However, Ceat’s consolidated net profit fell by 13.57% to Rs. 630.8 million for the quarter ended September 30, 2018 compared with a net profit of Rs 729.9 million in the year-ago period. Consolidated total income stood at Rs. 17.58 billion for the quarter under review as against Rs. 15.29 billion for the same period a year ago. Goodyear India, Premier PTL and Modi Rubber reported a fall of 4.02%, 2.30% and 15.48% respectively during the period.