Apollo Results Show Growing Profits & EU Presence

The board of directors at Apollo Tyres made public details of the company’s unaudited second quarter and half-year results on October 26, figures that indicate strong profits. Combined India and South Africa net sales for the quarter between 1 July and 30 September were recorded as Rs 10,848.97 million (£134 million), slightly lower than the same period a year earlier (Rs 10,903.43 million). However, profits trebled: The Rs 182.18 million (£2.25 million) profit gained in second quarter 2006 swelled to Rs 576.09 million (£7.11 million) this year. Half year profits for the six months ended September 30 showed a similar trend, growing from Rs 298.69 million (£3.69 million) to Rs 1,122.5 million (£13.86 million).

“Both of our operations in India and South Africa have outpaced the industry’s rate of growth in the first half of the year,” commented chairman and managing director Onkar S Kanwar. “Stable raw material prices have certainly helped, [although] concerns lie ahead for the next two quarters.”

During the past half-year Apollo secured an OE contract with General Motors, to supply its Acelere tyre for the Chevrolet Spark. Passenger car radial sales in India increased by 28 per cent during this period, with truck and bus and light truck tyres increasing by 5 per cent and 6 per cent respectively. Exports of radials from India were up 22 per cent over the same period last year, with exports to the European Union growing by over 400 per cent and to the Americas by 85 per cent.