Apollo net profits nearly triple in H1

Gurgaon, India - Apollo Tyres Ltd, has reported a huge rise in net profit and operating profit for the six months to 30 September, 2007, but the net sales margin remains below six percent. The company said its unaudited half-yearly results for the financial year 2007-08 showed sales up by 13 percent and net profits up by 175 percent.

The company said net profits were Rs 978.6 million (€17.4 million), up by 175 percent from the figure of Rs 356.3 million reported a year earlier. Sales alsogrew, to Rs 17 184 million (€305 million) from Rs 15 246 million a year earlier.

Commenting on the results, Onkar Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “Both our operations in India and South Africa have outpaced the industry's rate of growth in the first half of the year. That is reflected in the figures we have posted for the period, with a consolidated net profit growth of over 275 percent, taking all our operations into consideration. Stable raw material prices have certainly helped. ”

Kanwar added, "Concerns lie ahead for the next two quarters. In natural rubber, low global production in Malaysia and Thailand due to natural calamities plus the beginning of the lean season in India means prices could now harden. Combined with this is the rising price of crude and a supply tightness is also of concern. However, these are variables which we need to manage alongside our existing resources to remain competitive both in India and in our key export markets.

The Board also appointed Mr Arun Purwar, former Chairman, State Bank of India, as a Non-Executive Director on the Board of the company.

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Website of Apollo Tyres