Kochi, India – Apollo Tyres Ltd has registered declines in both second quarter and half-year results, due mainly to a slowdown in the Indian market.
Net sales for the second quarter of fiscal 2020, started April 2019, stood at Rs 39.2 billion (€501 million), down 6.3% compared to the same quarter the year before, Apollo announced 5 Nov.
Operating profit for the three months to end of September fell 9.1% year-on-year to Rs4.3 billion, while net profit plunged 43% to Rs830 million.
For the half-year period, sales fell 8.7% to Rs82 billion, while operating profit decreased 10.4% to Rs9.4 billion. Net profit posted a 43% decline to Rs2.25 billion for the six-month period.
While the European operations reported a single digit growth in revenue, the Indian operations’ sales was impacted by the slowdown in the Indian market, especially in the OE segment, Apollo said.
However, amid challenging market conditions across the Indian automotive sector, the company said it saw positive volume growth in the replacement market, both in passenger vehicle and commercial vehicle tire segments.
The European operations reported positive volume growth, on the back of “exemplary test results” for winter and all-season tires by auto magazines, for both Apollo and Vredestein brands, said company chairman S Kanwar.