Apollo Tyres profit surges 19% in Q1 at Rs 166 crore

Focus on better product, customer mix result in improved profitability

Apollo Tyres net profit surges 19%  in Q1 of the current financial year. Net Profit increased to Rs 166 crore from Rs 139 crore in the same  quarter last year.

Focus on better product and customer mix results in improved profitability, a press release said. Earlier in the day, 40th Annual General Meeting, shareholders approved the annual dividend payout of 50%  per share (0.50 per equity share), for the year ended March 31, 2013.

For the quarter ended June 30, 2013, the company  on a consolidated level, reported a profit of Rs 166 crores
on the net sales of Rs 3190 crores.Net sales in Q1 of last FY was Rs 3,165 crore. Despite the sluggishness in the automotive sector, the company has managed to hold on to its revenues.

Apollo Tyres’ European Operations, continuing its strong performance, registered an increase of 6%  in revenues in Q1 FY14, as compared to the same period last year. The net sales for company’s South African operations also grew 13%  amidst concerns of growing imports of tyres from China.

Commenting on the results, Onkar S Kanwar, Chairman,  said, “It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability.”