Goodyear India Limited has announced its financial results for the third quarter of fiscal 2022. With total revenue of Rs 612 crore in Q3 2022, the company has reported an 18 per cent increase in revenue on a YoY basis. However, the third quarter’s profit after tax (PAT) has taken a major hit. The company has reported a PAT of Rs 19 crore, a decrease of 60 per cent compared to Rs 49 crore in the prior year.
According to the company, the decrease in the third quarter’s profit after tax can be attributed to higher commodity prices. The PAT as a percentage of sales was 3.2 per cent, down from 9.4 per cent in the same period last year. Moreover, the company’s Gross Margin was negatively impacted by the higher cost of goods sold (+28 per cent) due to increased raw material prices across all categories. Goodyear says that its other expenses were also impacted by a steep rise in fuel prices.
Commenting on the company’s Q3 financial reports, Sandeep Mahajan, Chairman & Managing Director of Goodyear India Ltd. said, “Our consumer replacement business continued to grow and gain market share, reflecting the strength of our brands. In this unprecedented environment, we’re focused on offsetting costs with pricing and cost actions, expanding our distribution, and continuing to prioritize the health and safety of our associates.”
“While demand remains robust, the business continues to deal with various cost pressures including the effects of the pandemic on the labour force, steep rise in fuel prices, and ongoing raw material inflation,” Goodyear said in a press statement. The company reported a cash and bank balance of Rs 528 on December 31, 2021, and says this was attributable to sustained operating cash flows, aided by improvement in working capital and Capex optimization.