Kochi, India – Apollo Tyres has reported declines in first quarter operating profit and net profit amid headwinds, especially in the Indian market.
Operating profit recorded an 11.7% decline at Rs 5.0 billion (€64.2 million) in the three months to end of June, on 0.7% higher net sales at Rs 42.7 billion, the Indian tire maker announced 31 July.
Net sales remained positive aided by growth in the replacement segment, both in commercial vehicle and passenger vehicle segment in India as well as in Europe.
Net profit fell sharply from Rs 2.5 billion in the first quarter of the previous financial year to Rs. 1.42 billion in fiscal 2020, according to the Apollo statement.
“While the demand from the auto makers remained subdued, there was growth in the replacement market segment [in India],” said Onkar S Kanwar, chairman, Apollo Tyres Ltd.
According to Kanwar, Apollo is performing “better than the industry” in Europe and is likely to continue going forward.