Apollo sees lower profits on surging sales

ERJ staff report (DS)

Mumbai, India - Apollo Tyres saw a 9 percent in crease in net sales, in the 12 months to March 2011, but net profits fell by 33 perent.

Consolidated annual revenues, taking into account the manufacturing bases in India, South Africa and

the Netherlands, grew by 9 percent to reach a net sales of Rs 88.6 billion (euro ?? million). Net profit stood at Rs 4.4 billion from Rs 6.5 billion the previous year

Commenting on the results, Onkar S Kanwar, Chairman, Apollo Tyres Ltd, said, “This has been an

extremely challenging year of spiraling raw material prices, especially natural rubber, and closures for

over a quarter in one of our Indian plants, and an industry-wide strike in South Africa. These resulted in

production and sales losses. Despite these, we have registered a very positive revenue growth across all

our operations.”

In Q4, however, sales rose by a massive 27 percent, partly on the back of increased selling prices. Pre-tax profit fell by a bout a third to Rs 2103 million, from Rs 3223 million a year earlier. Raw materials costs in the quarter increased by almost Rs 5000 million in the quarter to Rs 16.2 billion, from Rs 11.4 billion a year earlier.

European sales growth in the quarter was ahead of the corporate average, growing 12 percent to Rs 6230 million from Rs 5641 million a year previously.

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Press release from Apollo

Results statement from Apollo