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Higher costs of imported raw materials, such as rubber, on the back of a weaker rupee has led to a 17 per cent drop in Apollo Tyres' consolidated net profit for the fourth quarter ended March 31, 2012.
Net sales, however, went up 18 per cent in the period.
For the full year 2011-12, consolidated net profit fell seven per cent to Rs 410 crore, while net sales rose 37 per cent to Rs 12,150 crore – crossing the $2.5-billion milestone.
Raw material costs for the year were up 44 per cent to Rs 7,635 crore.
Mr Onkar S. Kanwar, Chairman, said that the company was working towards faster market expansion outside India, for which it expects to add additional capacity.
“The conditions in our largest market – India, have not been easy. Same applies for the South African economy.
“But the positives are many, primarily expansion of our passenger vehicle range and the launch of three ultra-high performance tyres in Europe.”
In the year, the Indian operations saw 49 per cent higher revenue, while Europe grew 27 per cent and Africa 10 per cent.
Apollo Tyres shares on the BSE were down 3.31 per cent to Rs 81.80 on Thursday.
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