Tyremaker Goodyear India posts 40% jump in Q2 profit on subdued input costs

Tyre manufacturer Goodyear India reported a 40% rise in second-quarter profit on Friday as its raw material spends declined.

Standalone profit for the Indian unit of U.S.-based Goodyear Tire and Rubber Co rose to Rs 37.94 crore ($4.6 million) in the three months to Sept. 30 from Rs 27.1 crore a year earlier.

Rubber prices have contracted sequentially for the second quarter in a row as production and consumption in China, which consumes about 40% of global natural rubber, has been sluggish, according to analysts.

Goodyear's total expenses fell more than 12%, led by nearly a 30% decline in input costs, while revenue dropped about 10% to 6.90 billion rupees.

Poor monsoons have made commercial vehicles such as tractors less affordable for India's rural population, hurting automakers and auto-ancillary companies.

Goodyear has reported a profit climb in each of the last five quarters.

Rival CEAT earlier this month reported soaring second-quarter profit, while other peers MRF, JK Tyre and Industries and Apollo Tyres will report next month.