(Reuters) -Tyremaker Goodyear India reported a profit in the fourth quarter on Tuesday, as higher replacement demand for tyres offset the impact of higher rubber prices.
U.S.-based Goodyear Tire’s Indian unit posted a profit of 48.7 million rupees ($570,578) for the three months ended March 31 against a loss of 42.1 million rupees a year ago.
Goodyear India supplies tyres to BMW and Toyota among others and depends on automakers’ sales for a major chunk of its revenue.
Total vehicle sales in India rose 1.8% year-over-year in the reported quarter but analysts said that demand for replacing old or worn out tyres sustained.
Rival CEAT missed its quarterly profit estimates last month, while MRF beat estimates.
Goodyear India’s revenue from operations rose 9.5% to 6.03 billion rupees, compared to a 15.6% fall last year.
Its total expenses grew 7.2%, led by a 28.7% rise in cost of materials consumed.
The company had expected a pick up in replacement demand, which is cyclical in nature, in the fiscal year ending March.
Its shares closed 1.6% higher before the results.
($1 = 85.3520 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)
