Apollo Tyres Q2 net soars 46% to Rs 78 cr

Apollo Tyres today reported a 46.05% jump in consolidated net profit to Rs 77.77 crore for the quarter ended September 30 on the back of the robust performance of its European business.

The company had posted a net profit of Rs 53.25 crore for the corresponding period last year.

The company's consolidated net sales also increased by 47.32% to Rs 2,871.24 crore during the second quarter from Rs 1,948.92 crore in the year-ago period.

"Our European operations, Vredestein, helped us a lot in maintaining our bottomline. Vredestein contributed with a profit of Rs 55 crore," Apollo Tyres Managing Director Neeraj Kanwar told PTI.

In contrast, Apollo Tyres' Indian operations were under pressure during the quarter due to high natural rubber prices, he added.

"The domestic rubber prices are around Rs 210-220 per kg, while the imported rubber is Rs 170 per kg. It affected our domestic margins," Kanwar said.

The weakening rupee has also impacted the company's margins, he added.

When asked about the outlook, he said rubber prices are likely to stabilise in the current quarter.

"We are hoping for a better realisation during the fourth quarter of the fiscal," Kanwar said.

Shares of the company were trading 2.51% up at Rs 61.35 per share in the late afternoon on the BSE.