Goodyear India Q2 profit falls 59% amid volume drop, increase in inputs costs

Tire manufacturer Goodyear India reported a profit before tax of Rs 21 crore for the second quarter ended September 30, 2024, down from Rs 51 crore in the same period last year. Revenue declined 1% to Rs 687 crore from Rs 695 crore in Q2 FY24.

The company's half-year profit before tax fell 47% to Rs 55 crore, compared to Rs 103 crore in the previous year. Total income for H1 FY25 decreased 3% to Rs 1,382 crore.

Chairman and Managing Director Sandeep Mahajan said the farm industry has shown recovery after a downturn in the previous financial year. "With an above-normal monsoon this year and outlook for the Rabi season supported by hike in Minimum Support Prices, we expect growth in the rural economy over the coming quarters," he said.

The company is repositioning its consumer replacement business in the premium segment, focusing on luxury, SUV, and EV segments through new product launches and pricing adjustments, Mahajan added.

The decline in quarterly and half-yearly profits was attributed to lower sales volume, increased raw material costs, and extended producer responsibility (EPR) expenses.

The company's cash and bank balance stood at Rs 198 crores as of September 30, 2024, up from Rs 124 crores on March 31, 2024. It paid a dividend of Rs 15 per equity share in August 2024, resulting in an outflow of Rs 35 crores.

The company received the Golden Peacock Award for Corporate Governance for 2024.

One of the world's largest tire companies, Goodyear manufactures its products in 55 facilities in 22 countries around the world. Its two Innovation Centers in Akron, Ohio, and Colmar-Berg, Luxembourg, strive to develop products and services that set the technology and performance standard for the industry.