Apollo Tyres Sees Profit Hike in July-September, Predicts Big Things for 2010

After witnessing a substantial jump in profits from the quarter ending 30 September 2009, Indian tyre manufacturer Apollo has suggested that more is to come in 2010. The company told Indian business news sources that it will be aiming for 50 per cent higher revenues for its financial year (ending March 2010) thanks to the effect of its new-ish European subsidiary, Vredestein Banden, which the company acquired on 15 May.

According to the Economic Times, company profits during the quarter rose to 1.292 billion rupees (£16.8 million) from 150.1 million (£1.95 million) in Q2 2008/9. Earnings from Vredestein Banden and Dunlop Tyres in South Africa are thought to be partially responsible for the leap, though the company declined to reveal breakdowns.

The company increased prices on all tyres by 3 per cent earlier in the year, in line with other Indian manufacturers. Neeraj Kanwar, managing director of Apollo Tyres, said, “Our volumes grew 25 per cent during the July-September period with strong demand coming from domestic market for truck, bus and passenger cars. Besides, better utilisation of our plants and the lower interest costs also abetted higher profits.”