Apollo Tyres Q2 net profit rises 8% to Rs 279 crore

Apollo Tyres today reported 8.06% rise in its consolidated net profit at Rs 278.74 crore for the second quarter ended September 30.

The company had posted a net profit of Rs 257.94 crore during the same period of previous fiscal.

Net sales of the company, however, declined to Rs 2,979.98 crore during the second quarter, as against Rs 3,331.41 crore in the same period of previous fiscal, Apollo Tyres said in a filing to the BSE.

"While Indian operations reported flat revenues, delayed onset of winters in Europe, resulted in lesser than expected sales and pre-orders for winter tyres, adversely impacting the company's European operations, it added.

The company's board, which met today, has approved merger of Apollo (Mauritius) Holdings, a wholly-owned subsidiary, with the company.

Commenting on the results, Apollo Tyres Chairman Onkar S Kanwar said, "Despite the increasing import of truck-bus radials (TBR), which continues unabated into India, we have been able to hold on to our revenues."

In the July-September quarter, the truck bus radial (TBR) imports increased almost 100%, as compared to the same period last year, of which, the Chinese brands contributed nearly 90%, he added.

"The problem of low cost imports is putting at risk the entire 'Make in India' clarion call by the Indian government," Kanwar said.

Apollo Tyres shares were trading 6.25% down at Rs 171 apiece during afternoon session on the BSE.