London – Apollo Tyres Ltd has announced its third quarter results for FY15, saying the company has “maintained profit margins” despite troubles at its South African subsidiary.
The company said that its 9-month pre-tax earnings (EBITDA), without exceptional items, stood at 14.72 billion rupees (€209.404 million), which was slightly higher than the previous year’s 13.82 billion rupees.
According to the Indian tire maker, the declines were due to “uncompetitive cost structure in the South African market along with continuous labour unrest” which eventually led to the decision to close the Durban facility.
“While we continue with our trading operations in South Africa, it is time for us to move forward and explore newer territories for the next phase of organisations’ growth,” Apollo Chairman Onkar S. Kanwar said in a statement.
The South African business rescue proceedings were initiated in the second quarter and a rescue plan was approved in November 2014, with the closure of the Durban plant.
“All dues to Bankers and external suppliers have been cleared, along with the retrenchment package of employees,” announced the tire-maker.
These payouts, said Apollo, have been provisioned for in the quarter under review, thereby adversely impacting the consolidated profit of the company.