The Board of Directors of Apollo Tyres Ltd approved the company’s unaudited results for the 1st quarter of the financial year 2015-16 recently. For the quarter ended June 30, 2015, Apollo Tyres Ltd, on a consolidated level, reported a profit of Rs. 291 crores on the net sales of Rs. 2,832 crores. While the European operations reported flat revenue growth in the quarter under consideration, the increasing imports of commercial vehicle tyres, into the country, adversely impacted the revenue of the Indian operations. More than 30 per cent of the demand for truck-bus radials from the replacement market in India is being met by these imported tyres, which are mostly from China.
The company’s operating profit was at Rs 5.29 billion (Rs 529 crore) an increase of 15 per cent, from Rs 4.58 billion (Rs 458 crore) and its net profit grew 27 per cent to Rs 2.91 billion (Rs 291 crore) from Rs 2.28 billion (Rs 228 crore).
Commenting on the results, Mr. Onkar S. Kanwar, Chairman, Apollo Tyres Ltd said, “In a slow-growth market across geographies, further marred by unregulated imports of tyres in India, we have planned and invested to capitalise on the future opportunities. This strategic planning will reduce our dependence on a particular market for growth and help us expand our global footprint.”
Cross Currency Reference Chart for Key Financials:
| Q1 FY2015-16 |
Rs Billion
|
US$ Million
|
Euro Million
|
| Net Sales | 28.32 | 446.15 | 403.25 |
| Operating Profit | 5.29 | 83.17 | 75.17 |
| Net Profit | 2.91 | 45.78 | 41.37 |