Apollo Tyres reports volume growth in Europe, India, says rubber prices a “challenge”
The Board of Directors of Apollo Tyres Ltd today approved the company’s unaudited results for the third quarter of the company’s 2016-17 financial year. Consolidated revenue in the three months to 31 December 2016 amounted to Rs 34.35 billion (£404.8 million), a year-on-year rise of 17 per cent, while operating rose slightly to Rs 5.37 billion (£63.3 million) and net profit increased by six per cent year-on-year to Rs 2.96 billion (£34.9 million). The tyre maker states that it witnessed good volume growth in both its Indian and European operations in the third quarter, led by the passenger car tyre segment.
Commenting on the company’s third quarter performance company chairman Onkar S Kanwar, said: “We have been able to deliver positive numbers in spite of various external factors in the last few months. While uncertainty around GST (Goods and Services Tax) in India adversely impacted the commercial vehicle segment, the passenger vehicle segment witnessed a good growth. European operations grew both in revenue and volume terms, and that too, faster than the industry. Having said that, the increasing rubber and other raw material prices in the last few months would be a challenge for us, and the industry, going forward.”
Consolidated revenue for the first nine months of the current financial year was up 12 per cent year-on-year to 97.94 billion (£1.2 billion). Operating profit remained almost constant at Rs 15.81 billion (£186.3 million) and net profit increased slightly to Rs 8.71 billion (£102.7 million).