Apollo Tyres Q2 net profit soars 96%

Apollo Tyres today reported 95.71% increase in its consolidated net profit for the quarter ended September 30 at Rs 152.20 crore on account of better sales in India and South Africa.

The company had posted a net profit of Rs 77.77 crore in the corresponding period last year, Apollo Tyres said in a statement.

The net income during the second quarter also went up by 17.54% to Rs 3,374.83 crore from Rs 2,871.24 crore in the year-ago period, it added.

"Most of the July-September growth was driven by India, which grew 24% riding on increased sale of truck-bus radials. South Africa, which is witnessing an upward trend in the automotive sales, a positive sign for the company, saw a topline growth of 29%," Apollo Tyres said.

European operations' revenue grew despite the economic concerns and slowing automotive sales across the continent, the company added.

Apollo Tyres Chairman Onkar S Kanwar said: "Despite the challenging circumstances, we have succeeded in maintaining a healthy topline and bottomline. Our revenues received a booster dose, riding on the replacement demand, more so in India and South Africa."

The company's investment decision to set up the Chennai Plant is now paying off as the market seeks more truck and bus radial tyres, he added.

Shares of Apollo Tyres, however, closed down 2.37% at Rs 86.45 apiece on the BSE.