Apollo Tyres shares opened at Rs 369.85 per share on the BSE. The company is in talks with the labour union leaders to address their issues
Apollo Tyres Limited shares fell over 2 per cent to Rs 369 in early trade on Thursday after the company announced that tyre production has been suspended at the Limda, Gujarat, manufacturing site due to a labour disagreement. Apollo Tyres shares opened at Rs 369.85 per share on the BSE.
The production suspension comes after concerns from shop floor employees over the renewal of a long-term settlement agreement.
The company is in talks and negotiations with the labour union leaders to address their issues and reach a mutual agreement.
"The company is in discussions and negotiations with the labour union representatives to address their concerns and find an amicable resolution," the company said in a stock exchange filing on 20 September.
"While the company is monitoring the situation closely, there are plans in place to mitigate any supply disruptions," it added.
Apollo Tyres said that this situation will have no material impact on the company’s operations.
In the last month, Apollo Tyres shares have plunged over 7 per cent, underperforming the overall market. The stock surged over 28 per cent in last year.
For the June 2023 quarter, the company’s consolidated net profit jumped two-fold to Rs 397 crore, compared to Rs 177 crore in the corresponding quarter last year.
The company reported higher-than-expected growth in quarterly profit on the back of lower rubber costs and strong domestic auto sales across markets.
Revenue from operations for the quarter jumped 5 per cent to Rs 6,245 crore in the recent quarter, compared to Rs 5,942 crore in the year-ago period.