Apollo Tyres Q3 net dips 19% on high input costs

Apollo Tyres today reported 18.58% decline in its consolidated net profit for the quarter ended December 31, 2011, at Rs 98.04 crore due to impact of high input costs.

The company had posted a net profit of Rs 120.42 crore in the corresponding period last financial year, Apollo Tyres said in a statement.

Consolidated net sales during the third quarter, however, increased by 36.29% to Rs 3,228.24 crore from Rs 2,368.58 crore in the year-ago period, it added.

Commenting on the results, Apollo Tyres Chairman Onkar Kanwar said: "The raw material prices have stabilised to some extent, but they continue to remain on the higher side and put our margins under pressure."

 

The company's all three geographies of operations have performed well amidst concerns over a slowdown throughout the last two quarters, he added.

The revenue growth was led by Indian operations with 46% increase over the same period last fiscal, followed by South Africa with 28% and Europe with 26% growth respectively.

"I am confident that the next quarter would see us further consolidate our growth and profitability journey," Kanwar said.

During the quarter, the company's spending on raw materials went up by 37.28% to Rs 2,000.17 crore from Rs 1,457.01 crore in the same period previous year, the statement said.

The consolidated total expenditure shot up by 38.07% to Rs 2,986.25 crore compared to Rs 2,162.87 crore in Q3 of FY11, it added.

Shares of the company were trading 4.49% up at Rs 75.65 apiece on the Bombay Stock Exchange during late afternoon.