Apollo Tyres has reported a 20 per cent decline in net profit for the quarter ended March 31 while its revenues declined over 5 per cent due to rising tyre imports from China. The company's net profit declined to Rs 245 crore, impacted by an inventory adjustment of Rs 140 crore. Revenues slipped to Rs 2,966 crore.
Its profit for the year ended March 31, 2016 increased 12 per cent to Rs 1,093 crore helped by the low rubber prices during most part of the year. Annual revenue, however, declined 8 per cent to Rs 11,708 crore, indicating pressure on volumes.
"Our revenue in India, in the past financial year, has largely been impacted by the Chinese imports. The imported truck-bus radials, especially from China, occupied close to 30 per cent of the Indian replacement market for radial truck tyres, which not only impacted the domestic truck-bus radials, but also the truck-bus bias segment. With India having no anti-dumping duties, in the past fiscal on Chinese tyres, and numerous other geographies having imposed anti dumping duties on Chinese tyres, India has opened its market for low cost tyre imports from China, thereby putting at risk the huge investments made by the domestic tyre majors," said Onkar S Kanwar, chairman.