Tyre major Apollo Tyres on Wednesday announced a consolidated net profit of Rs 142 crore for the three months to June, which is lower by 44% when compared to the net profit of Rs 251.8 crore of the year ago period.
Tyre major Apollo Tyres on Wednesday announced a consolidated net profit of Rs 142 crore for the three months to June, which is lower by 44% when compared to the net profit of Rs 251.8 crore of the year ago period. Net sales reported was Rs 4,272 crore as compared to Rs 4,249 crore.
The net sales remained positive aided by growth in the replacement segment, both in commercial vehicle and passenger vehicle segment in India, company sources said. While Indian operations revenue was up 1% at Rs 3,044 crore, European operations revenue also grew 5% during the quarter.
Commenting on the first quarter results, Onkar S Kanwar, chairman, Apollo Tyres, said, “Our teams have lived to the true unstoppable spirit in the past quarter, and have bucked the trend in the automotive sector by posting positive sales numbers, despite the headwinds, especially in the Indian market. While the demand from the auto makers remained subdued, there was growth in the replacement market segment. Moving ahead, I am hopeful of the markets recovering and the sales bouncing back around the festive season in India. In Europe, we are performing better than the industry, which is likely to continue going forward as well.”
Earlier while speaking at the 46th Annual General Meeting (AGM) , the chairman said that there are certainly uncertain times ahead, yet the team continues to be bullish about the growth prospects.
“The company has invested close to Rs 4,000 crore in a new greenfield facility in Hungary and has also earmarked Rs 3,800 crore for a greenfield project in Andhra Pradesh. We also committed to upgrading our existing manufacturing plant in Chennai, expanding truck tyre radial production to 12,000 units a day from earlier 6,000 units,” he said.
“Apollo is the only Indian company which supplies to various OEMs in Europe like Volkswagen, Ford and Audi. The strategy of replicating our success with OEMs in India will go hand in hand with increasing our market share in the replacement markets,” he added.