The Hindu Business Line : Apollo Tyres Q1 net down 16.5 pc

The company recorded a net profit of Rs 15.63 crore during April-June 2004, as against Rs 18.72 crore during the corresponding period last year, a company statement said.

At the annual general meeting held at Kochi today, the company's board also approved payment of Rs 4.50 per share as final dividend to its shareholders for the year- ended March 31, 2004, the statement said.

The company reported a 13 per cent growth in sales turnover at Rs 615.37 crore during April-June 2004, against Rs 544.43 crore during the first quarter last fiscal. "This year also Apollo Tyres has outperformed the industry. The industry is reeling under the steep cost-push of most raw materials," Apollo Tyres' Chairman and Managing Director, Mr Onkar S. Kanwar, said in the statement.

"In the last quarter, we increased tyre prices in the range of 2-3 per cent and coupled with tight cost management, we have been able to mitigate the impact to a limited extent," he said.

He said the Government's renewed emphasis on the development of road infrastructure would brighten the prospects for the tyre industry while price of inputs like nylon tyre cord fabric dropped. "Apollo Tyres' strategy for the coming months will be to continue to consolidate market share while managing costs as efficiently as possible," Mr Kanwar said.

The domestic tyre industry is plagued by skewed demand and supply of natural rubber. Though the domestic demand for natural rubber is high, rubber exports grew 35 per cent during 2003-04.

He also said that international tyre manufacturers were getting cheaper raw material from India while the domestic tyre industry was forced to source natural rubber at ``exorbitant'' prices.