Apollo First Quarter Revenues up 15%

Apollo Tyres Ltd has reported that it achieved consolidated first quarter revenues of 13.2 billion rupees (£155 million), up 15 per cent from 11.5 billion rupees during the same period last year. During the same period, consolidated net post tax profit grew 7.3 per cent to 586.6 million rupees (£6.87 million).

Commenting on the results, Onkar S Kanwar, chairman & managing director, Apollo Tyres Ltd, said: “These are probably one of the most challenging times we have faced as a company. The unnatural rise in crude and natural rubber prices, have had a cascading impact across all raw materials…Merely by increasing product prices we will not be able to bridge this yawning gap. The only solution is to look internally, undertaking rigorous efficiency and economy drives across the organisation.

In the 12 months between June 2007 and July 2008, natural rubber prices have gone up by 61 per cent, while crude prices are up 111 per cent. Crude-based derivative prices grew 60 per cent, while an item like poly butadiene rubber is, according to Apollo, currently facing a production crisis, despite a price increase of 115 per cent.