Apollo tyres profit doubles in year to March

ERJ staff report (DS)

Gurgaon, Haryana, India -- Apollo Tyres Ltd said consolidated revenues grew by 9 percent, while pre-tax profit more than doubled, to Rs 4053 million (Euro 63.1 Million) for the 12 months ended 31 March, 2008. Net profit increased by 125 percent, to Rs 2697 million compared to last year's Rs 1171 million

Commenting on the results, Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said: “It's been a year of consolidation and a year of planning which will result in numerous expansion projects being launched this year. This year will be Apollo's year of unprecedented investments across our operations in India, South Africa and Europe. Given this, the improvement in our profitability ratios is heartening, but tough times stare us in the face with all-time highs in almost all our raw materials, inflation and the spectre of a global slowdown.

The company added, "Going forward, there might be no alternative to product price increases as it would be impossible to absorb a cost push of this magnitude. Raw materials account for about 70 percent of the selling price of a tyre."