Rise in revenue for Apollo Tyres

ERJ staff report (TP)

Gurgaon, India – Apollo Tyres announced an increase of 18% in revenue for its European operations in its first quarter results for 2014-15.

For the quarter ended 30 June 2014 – Q1 FY2014-15 (April – June) – Apollo reported a profit of Rs 228 crore (€27.8m) on net sales of Rs 3235 crore (394.9m).

The company’s Indian operations registered a 6% increase in revenue in the first quarter, while European operations, “continuing its good performance”, registered an increase of 18% in revenue, as compared to the same period last year.

Sale of part of its African business in the last fiscal, led to the company reporting flat revenue growth on a consolidated level in the first quarter.

Onkar S Kanwar, chairman of Apollo Tyres, said: “Increased vehicle sales in the past quarter across geographies, and especially in India, along with a better product and market mix, helped us report good numbers in the past quarter.”

The Q1 FY2014-15 (April - June) results in comparison to Q1 FY2013-14 show net sales stood at Rs 32.35 billion (Rs 3235 crore) from Rs 31.9 billion (Rs 3190 crore).

Operating profit this quarter was Rs 4.58 billion (Rs 458 crore) – an increase of 13%, from Rs 4.04 billion (Rs 404 crore) in Q1 FY2013-14.

Also, net profit grew 37% to Rs 2.28 billion (Rs 228 crore) from Rs 1.66 billion (Rs 166 crore) in the same period last year.

Kanwar added: “Along with our decision to go ahead with a new Greenfield facility in Eastern Europe, we also have plans in place to expand the truck-bus radial capacity at our Chennai plant and re-jig the product mix of our facility in Kalamassery, Kerala.”

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