Apollo Tyres: Q3 revenue up, profit down 17%
Although Apollo Tyres Ltd. reports that its sales were up in the third quarter of its current financial year and exceeded Rs 40 billion for the first time ever, net profit for the period was lower year-on-year. The tyre maker’s net sales increased 16.9 per cent year-on-year in the three months to 31 December 2017 to Rs 40.16 billion (£451.1 million), while operating profit was up 1.1 per cent to Rs 5.43 billion (£61.0 million). Net profit was down -17.2 per cent to Rs 2.45 billion (£27.5 million).
Commenting on the company’s performance in the quarter, chairman Onkar S Kanwar said, “We have witnessed healthy growth across our operations, and this trend is likely to continue in the coming quarters as well, with our expansion projects coming on stream. While there was growth across all product categories in India, it was primarily led by truck radials. The increase in customs duty for the truck radials, announced in the Union Budget, will further boost our sales of commercial vehicle tyres in India. The raw material costs in the third quarter were significantly higher than the previous year.”