Apollo Tyres Q1 net up 7%

Consolidated revenue during the quarter stood at Rs 1,320 crore, against Rs 1150 crore in the corresponding quarter a year ago, up 15 per cent, the company said in a statement.     

At the Annual General Meeting of the company, the shareholders approved the annual dividend payout of 50 per cent per share for the year ended March 31, 2008, it added.     

Standalone India Operations net profit was at Rs 48.63 crore, up 4 per cent from Rs 46.76 crore, it said, revenue was at Rs 1,070 crore, up 23 per cent from Rs 870 crore.     

Commenting on the results Apollo Tyres Chairman & Managing Director Onkar S Kanwar said, "These are probably one of the most challenging times we have faced as a company. The unnatural rise in crude and natural rubber prices, have had a cascading impact across all raw materials."     

Combined with prices, which are two or three times higher than what they were last year, the company is facing the added problem of certain essential crude-based raw materials being unavailable even at higher prices, he added.     

"Merely by increasing product prices we will not be able to bridge this yawning gap. The only solution is to look internally, undertaking rigorous efficiency and economy drives across the organisation. That's the silver lining. I believe this frugality will only strengthen the company in the long run," Kanwar said.