The Hindu Business Line : Apollo Tyres Q2 net zooms on stable raw material prices

New Delhi, Oct. 26 Stable raw material prices have helped Apollo Tyres Ltd register a 164 per cent jump in net profit on a standalone basis (Indian operations only) for the second quarter ended September 30, 2007.

The net profit for the second quarter was at Rs 51.1 crore against Rs 19.3 crore registered in the corresponding previous quarter.

The net sales registered a 10 per cent increase during the quarter to Rs 844.31 crore against Rs 767.33 crore in the second quarter of the previous financial year.

“Both our operations in India and South Africa have outpaced the industry’s rate of growth in the first half of the year. That is reflected in the figures we have posted for the period, with a consolidated net profit growth of over 275 per cent, taking all our operations into consideration. Stable raw material prices have also helped,” Mr Onkar S Kanwar, Chairman & Managing Director, Apollo Tyres Ltd, said, in a release.

He, however, added that there could be some concerns in the next two quarters. “In natural rubber, low global production in Malaysia and Thailand due to natural calamities coupled with the beginning of the lean domestic season means prices could harden.

“Combined with this is the rising price of crude and a supply tightness is also of concern. However, these are variables which we need to manage alongside our existing resources to remain competitive both in India and in our key export markets,” Mr Kanwar said.

For the first half of the financial year, the company’s net profit rose 174.65 per cent on a standalone basis to Rs 97.86 crore against Rs 35.63 crore registered in the April to September period last year. Net sales grew 13 per cent to Rs 1,718.45 crore from Rs 1,524.6 crore.

The release added that passenger car radial tyre sales continued their rapid growth, registering 28 per cent higher sales in India in the first six months against the same period last year.