For the quarter ended June 30, 2013, Apollo Tyres Ltd., on a consolidated level, reported a profit of Rs. 166 crores on net sales of Rs. 3190 crores. Despite the sluggishness in the automotive sector, the company has managed to hold on to its revenues. Its European Operations, continuing its strong performance, registered an increase of six per cent in revenues in Q1 FY14, as compared to the same period last year. The net sales for the company’s South African operations also grew 13 per cent amidst concerns of growing imports of tyres from China.
Commenting on the results, Mr. Onkar S. Kanwar, Chairman, Apollo Tyres Ltd., said: “It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability.”
Net sales stood at Rs. 31.9 billion (Rs. 3190 crores) in the first quarter of 2013-14 against Rs. 31.6 billion (Rs. 3165 crores) in the first quarter of 2012-13. Operating profit was at Rs. 4.04 billion (Rs. 404 crores), an increase of 12 per cent, from Rs. 3.6 billion (Rs. 361 crores). Net profit grew 19 per cent to Rs. 1.66 billion (Rs. 166 crores) from Rs. 1.39 billion (Rs. 139 crores).
Mr. Kanwar added: “During the last quarter, we also announced the acquisition of US-based Cooper Tire and Rubber Company. With a rich history of working in multiple locations around the world and with diverse cultures, which is based on our core values, we remain committed to closing this compelling transaction. Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by Q3 of this fiscal.”