Goodyear India Ltd has reported a dismal second-quarter performance, with its net profit plummeting 59% year-on-year to ₹27.4 crore. The tyre manufacturer’s revenue from operations also declined 12.6% to ₹544.8 crore.
The company’s sales volume took a hit, declining 15% year-on-year to 182,000 tyres, primarily due to weak demand in the domestic market. This, coupled with higher raw material costs, led to a significant contraction in operating margin.
“The decline in sales volume and increase in input costs have impacted our profitability,” said Rajeev Anand, Chairman and Managing Director, Goodyear India. “We’re taking steps to improve operational efficiency and reduce costs.”
Despite the challenging domestic market, Goodyear India’s export sales grew 10% year-on-year, driven by strong demand for its products in international markets. Industry experts attribute the decline in Goodyear India’s performance to the overall slowdown in the automotive sector and rising input costs.
To mitigate the impact of the slowdown, Goodyear India is investing in digital transformation and expanding its product portfolio. “We’re committed to delivering high-quality products and services to our customers,” said Anand. “We’re confident of improving our performance in the coming quarters.”
Goodyear India’s Q2 performance has raised concerns among investors, with the company’s shares declining 3.5% on the BSE. As the Indian tyre industry navigates through challenging times, Goodyear India’s efforts to improve its competitiveness and expand its product portfolio will be closely watched by investors and industry analysts.
The company is one of the world’s largest tire manufacturers, employing approximately 71,000 people and operating 55 facilities across 22 countries. The company’s two Innovation Centers, located in Akron, Ohio, and Colmar-Berg, Luxembourg, are dedicated to developing cutting-edge products and services that set industry standards for technology and performance.
In India, Goodyear has a 100-year presence, with two manufacturing plants in Ballabgarh and Aurangabad. In the farm tire category, the company is a leading player in the Original Equipment segment, supplying to all major tractor manufacturers in the country.
