Apollo Tyres Q1 profit up 19%
Apollo Tyres Ltd has reported first quarter 2013-2014 financials including a 19 per cent rise in net profits to 1.66 billion rupees (22.8 million euros; US$29.7 million). The announcement followed the approval of a large dividend pay-out of 50 per cent per share (0.50 per equity share), for the year ended 31 March 2013.
On a consolidated level the company reported net sales of 31.9 billion rupees (US$571.7 million; 437.7 million euros) for the period. Apollo Tyres’ European Operations, continuing its strong performance, registering a 6 per cent in revenues in the first quarter. Net sales for company’s South African operations also grew 13 per cent amidst concerns of growing imports of tyres from China.
Apollo’s key 1Q financials
|
Q1 FY2013-14 |
Rs billion |
US$ million |
Euro million |
|
Net sales |
31.90 |
571.7 |
437.7 |
|
Operating profit |
4.04 |
72.5 |
55.5 |
|
Net profit |
1.66 |
29.7 |
22.8 |
Source: Apollo Tyres Ltd.
Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres Ltd said: “It is a challenging time for the automotive industry, with sales slowing for most vehicle makers. However, our leadership in the high-margin truck-bus radial segment in India, along with an increased focus on the replacement market across geographies, has helped us increase our profitability.”
Referring to the company’s on-going acquisition of Cooper Tire, Kanwar added: “During the last quarter, we also announced the acquisition of US-based Cooper Tire and Rubber Company.” Possibly seeking to soothe future relations with striking workers at one of Cooper’s Chinese factories, Kanwar continued: “With a rich history of working in multiple locations around the world and with diverse cultures, which is based on our core values, we remain committed to closing this compelling transaction. Both companies are working towards securing all necessary approvals to close the deal, which is expected to happen by the third quarter of this fiscal.”
Comments